DULLES, Va., June 27 /PRNewswire/ -- Orbital Sciences Corporation (NYSE: ORB) today announced that it has completed the sale of 4.0 million shares of its MacDonald, Dettwiler and Associates, Ltd. subsidiary (Toronto: MDA) for approximately $38 million. The 4.0 million shares were sold to a group of Canadian investors that include British Columbia Investment Management Corporation (BCIMC), James Richardson & Sons, Limited and the Ontario Municipal Employees Retirement System. This transaction represents the completion of the second phase of Orbital's previously announced agreement to divest its ownership in MDA. In May, Orbital announced that it had completed the initial phase of the divestiture with the closing of the sale of 12.35 million shares for approximately $112 million.
The company also announced that it has entered into an agreement with a syndicate of underwriters to sell its remaining 1.65 million shares in a public offering to be made in Canada and in a private placement to qualified institutional buyers in the United States. The Canadian public offering is expected to close on or about July 17, 2001.
When all three phases of the MDA divestiture have been completed, the total proceeds to Orbital are estimated to be approximately $169 million, up from the total proceeds estimate of $163 million originally announced in April.
With the proceeds from the first two phases of its divestiture of MDA, Orbital has paid down approximately $99 million of debt. The company intends to continue its balance sheet and working capital improvements with the proceeds from the final phase of the MDA sale, as well as from the proceeds from the previously announced sales of its interests in Magellan Corporation and Navigation Solutions, LLC, which are expected to close in July 2001.
"Consistent with our 'back to basics' strategy focusing on our core space technology products, the completion of this phase of the MDA transaction represents a major step forward in our commitment to strengthen the company's financial position," said Mr. David W. Thompson, Orbital's Chairman and Chief Executive Officer. "With the proceeds from the remaining phase of the MDA divestiture and other planned asset sales, Orbital will continue with our aggressive campaign to reduce total debt and improve the company's liquidity throughout 2001."
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 manufactures low-cost space systems, including satellites, launch vehicles, sensors and electronics. 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|
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CONTACT: Media: Barron Beneski, 703-406-5000, email@example.com, or Investors: Tim Perrott, 703-406-5997, firstname.lastname@example.org, both of Orbital Sciences Corporation/