Space systems manufacturer Orbital Sciences has closed a US$450m financing, a portion of which will be used to fund the tender offer for its convertible senior subordinated notes.
The new facility comprises a new five-year US$150m secured term loan,…
Space systems manufacturer Orbital Sciences has closed a US$450m financing, a portion of which will be used to fund the tender offer for its convertible senior subordinated notes.
The new facility comprises a new five-year US$150m secured term loan, paying 175bp over Libor, as well as an amendment and extension to its existing US$300m revolving credit facility. The first lien revolver, which was secured in June 2011, will now mature in December 2017 having originally been due mid-2016.
A syndicate of ten banks supported the facility and were led by Wells Fargo, Citigroup and Merrill Lynch, Pierce, Fenner and Smith as joint lead arrangers and joint bookrunners.
Commenting on the transaction, Garrett Pierce, Orbital`s vice chairman and CFO said: “We are pleased to announce the closing of this expanded credit facility with our banks which allows us to improve our capital structure and maintain our strong liquidity position. Further, it gives us significant financial flexibility to support the future growth of our business.”
The completion of the financing satisfies a central condition of the tender offer and Orbital is now seeking to acquire the US$143.75m outstanding of 2.4375% senior subordinated convertible notes, due 2027.
The deadline for the offer, which is being managed by Citigroup and Wells Fargo, is 18 December 2012.
