DULLES, Va., May 31 /PRNewswire/ -- Orbital Sciences Corporation (NYSE: ORB) today announced that it has completed the sale of 12.35 million shares of its MacDonald, Dettwiler and Associates, Ltd. subsidiary (Toronto: MDA) for approximately $112 million. The closing of the transaction represents a major step forward in the company's execution of its company-wide restructuring that focuses on its core space technology products. Orbital stated that it intends to use the proceeds from the sale to reduce debt, to boost cash reserves for working capital and for other general corporate purposes.
The shares were sold to a group of Canadian investors that include CAI Capital Partners and Company II, L.P., British Columbia Investment Management Corporation (BCIMC) and the Ontario Teachers' Pension Plan Board. Orbital is also aiming to close the sale of its remaining 5.65 million MDA shares by the end of June, which is allowed for under a one-month extension to the purchase option agreement with CAI and BCIMC that was originally announced on April 16, 2001.
"With the completion of the $112 million initial phase of the MDA sale, Orbital has taken another significant step forward in our commitment to improve the company's financial position," said Mr. David W. Thompson, Orbital's Chairman and Chief Executive Officer. "With the proceeds from this divestiture, Orbital will strengthen its balance sheet and improve its liquidity as we continue to execute on our "back to basics" strategy, concentrating on the markets for the company's core space technology products," he added.
MDA is Canada's leading space and information systems company and is the world's primary supplier of space robotics technology. It employs approximately 1,800 people at major facilities in the Vancouver and Toronto areas, as well as at other Canadian and international locations.
Orbital is one of the world's leading manufacturers of low-cost space systems, including satellites, launch vehicles, sensors and electronics, and satellite ground systems. Orbital is also involved with satellite-based networks that provide wireless data communications and high-resolution Earth imagery to customers all around the world.
|More information about Orbital can be found at http://www.orbital.com .|
|CONTACT:||Barron Beneski, 703-406-5528, or firstname.lastname@example.org, or|
|Investors:||Tim Perrott, 703-406-5997, or email@example.com, both of|
|Orbital Sciences Corporation|
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SOURCE Orbital Sciences Corporation
CONTACT: Barron Beneski, 703-406-5528, or firstname.lastname@example.org, or Investors: Tim Perrott, 703-406-5997, or email@example.com, both of Orbital Sciences Corporation/