MDA wins Spanish satellite contract; EDC adds $175M in financing
by Canadian Manufacturing.com Staff
Space Systems/Loral LLC (SSL), an MDA subsidiary in Palo Alto Calif., will build the Hispasat 1F satellite for Spanish telcom Hispasat Group
RICHMOND, B.C.—A subsidiary of Aerospace manufacturer MacDonald, Dettwiler and Associates Ltd (MDA) has won a contract to build a satellite for Hispasat, a Spanish satellite telecommunications operator.
Space Systems/Loral LLC (SSL), an MDA subsidiary in Palo Alto Calif., that builds geospatial commercial satellites, will build the Hispasat 1F satellite, which will have a multi-mission payload that provides additional Ku band capacity in the Andean region and in Brazil as well as expanding its transatlantic capacity with additional Ka band capacity with European coverage.
Export Development Canada (EDC) provided the Spanish company with $175.6 million (123-million Euros) to help seal the deal.
EDC often provides financing or loan guarantees to companies like Hispasat looking to purchase goods from Canadian suppliers to make it easier for Canadian companies to conclude their sales and deepen their relationships with foreign customers.
“Repeat business is essential to companies in the satellite telecommunications industry,” said Carl Burlock, senior vice-president, Financing and Investments, EDC. “EDC’s focus was to provide Hispasat with competitive financing critical to building a stronger relationship with MDA and SSL, ultimately encouraging growth in Canada’s high-tech sector.”
This will be the the third such satelite SSL has built for Hispasat. MDA acquired SSL in a blockbuster US$875 million deal in June 2012.
A key piece of Canada’s high-tech sector, MDA has offices across Canada and employs more than 4,800 people around the world.
“Hispasat is an industry leader, and an important customer for MDA to be aligned with,” says William McCombe, senior vice-president of Strategy and Finance at MDA.
“Competitive, long term financing from EDC provided stability and confidence in our contract. The end result is that we will be able to provide a new leading edge communications satellite in a very important market and garner more visibility across the industry,” added McCombe.
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