The acquisition is financed by a combination of cash on hand, a three-year promissory note of $101 million, a new twelve-year senior secured note of $250 million with two major U.S. financial institutions, an existing senior secured note of $100 million, and approximately $600 million of variable rate term and revolving loans under a new four-year $850 million senior secured syndicated credit facility.

MDA’s lead financial advisor for the transaction was Bank of America Merrill Lynch, with financial advice also provided by RBC Capital Markets and BMO Capital Markets.

"We are proud of our management team’s success in establishing SS/L as a leading global commercial satellite manufacturer and in bringing the transaction with MDA to closure," Loral Board of Directors Chairman Dr. Mark Rachesky said in a statement. "The transaction reflects the Board’s continued commitment to delivering significant value to all Loral shareholders, and the Board will evaluate the opportunity to return capital to shareholders through a cash distribution of the net cash proceeds from this sale transaction."