Company Closes New $1.8 Billion Senior Credit Facility and Offering
of $400 Million of Eight-Year Senior Notes
DULLES, Va.Sep. 29, 2015--
Orbital ATK, Inc. (NYSE:OA) today announced that the company has
completed its previously announced debt refinancing transactions,
including entering into a new $1.8 billion credit facility (the New
Credit Facility ) and completing a private offering of $400 million of
5.50% senior notes, due October 1, 2023 pursuant to Rule 144A and
Regulation S under the Securities Act of 1933.
Orbital ATK used the net proceeds from initial borrowings under the New
Credit Facility and the sale of the notes to repay in full and terminate
its prior secured credit facilities and to pay fees and expenses
associated with the transactions. The company may use available capacity
under the New Credit Facility for working capital and for other general
corporate purposes, subject to the terms of the credit agreement.
"We are very pleased to successfully complete these important
transactions, which will strengthen Orbital ATK s capital structure and
provide the flexibility to meet our capital and liquidity needs for the
foreseeable future," said Garrett E. Pierce, Chief Financial Officer of
The New Credit Facility includes a five-year term loan of $800 million
and a five-year revolving line of credit of $1.0 billion, compared to
the existing revolving line of $700 million. The new revolving line can
be used to fund short-term borrowings and for the issuance of letters of
credit. The senior notes will be general senior unsecured obligations
of Orbital ATK and will be jointly and severally guaranteed on a general
senior unsecured basis by certain of its existing and future
subsidiaries. The new senior notes are non-callable until 2018.
Mr. Pierce added, With the completion of this refinancing, the company
reduced its reliance on senior secured debt, increased its liquidity by
over $200 million, extended its debt maturities to 2020 and beyond, and
locked in attractively priced, longer-term fixed-rate capital.
Loans under the New Credit Facility will be priced initially at LIBOR
plus 1.5%. By comparison, previous credit facility borrowings were
priced at LIBOR plus 2% for the revolving line.
The notes and related subsidiary guarantees were offered and sold only
to persons reasonably believed to be qualified institutional buyers in
compliance with Rule 144A under the Securities Act and outside the
United States to non-U.S. persons in compliance with Regulation S under
the Securities Act.
The notes and the related subsidiary guarantees will not be registered
under the Securities Act or the securities laws of any jurisdiction and
may not be offered or sold in the United States absent an effective
registration statement or an applicable exemption from the registration
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy these securities and shall not
constitute an offer, solicitation or sale in any jurisdiction in which
such offer, solicitation or sale is unlawful.
About Orbital ATK
Orbital ATK is a global leader in aerospace and defense technologies.
The company designs, builds and delivers space, defense and aviation
systems for customers around the world, both as a prime contractor and
merchant supplier. Its main products include launch vehicles and related
propulsion systems; missile products, subsystems and defense
electronics; precision weapons, armament systems and ammunition;
satellites and associated space components and services; and advanced
aerospace structures. Headquartered in Dulles, Virginia, Orbital ATK
employs more than 12,000 people in 18 states across the U.S. and in
several international locations. For more information, visit www.orbitalatk.com.
"Safe Harbor" Statement Under the Private Securities Litigation
Reform Act of 1995
Certain information discussed in this press release constitutes
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995, including but not limited to, the
expected use of proceeds from the New Credit Facility, the effect of the
refinancing transaction on the company s capital and liquidity needs and
potential interest rates on borrowings. Forward-looking statements are
subject to risks and uncertainties that could cause actual results to
differ materially from those projected. For further information on
factors that could impact Orbital ATK, and statements contained herein,
please refer to the company's most recent Annual Report on Form 10-K and
any subsequent quarterly reports on Form 10-Q and current reports on
Form 8-K filed with the U.S. Securities and Exchange Commission. Orbital
ATK undertakes no obligation to update any forward-looking statements.
Source: Orbital ATK, Inc.
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