Orbital begins tender offer, consent solicitation for 9% notes

By Angela McDaniels

Seattle, Dec. 7 - Orbital Sciences Corp. began a tender offer to purchase the $126.425 million outstanding principal amount of its 9% senior notes due 2011, according to a company news release.

The company is also soliciting consents to amend the indenture governing the notes to eliminate most of the principal restrictive covenants, certain events of default and related provisions and to amend certain other provisions.

Adoption of the proposed amendments requires the consent of the holders of at least a majority of the notes outstanding. Holders who tender must consent and holders may not deliver consents without tendering.

The consent deadline is 5 p.m. ET on Dec. 20, and tender offer will end at midnight ET on Jan. 5.

The tender consideration will be determined at 2 p.m. ET on Dec. 20 using a yield equal to a fixed spread of 50 basis points plus the bid-side yield to maturity of the 3 5/8% U.S. Treasury Note due June 30, 2007.

The total consideration will include a consent payment of $20.00 per $1,000 principal amount of notes for holders who tender before the consent deadline.

The company said it will also pay accrued interest up to but excluding the payment date.

The tender offer is conditioned upon the receipt of tenders and consents from the holders of a majority of the notes and Orbital Sciences having sufficient funds to purchase the notes and to pay the tender consideration and consent payment.

Wachovia Securities (866 309-6316 toll free or 704 715-8341 collect) is the dealer manager and solicitation agent, and D.F. King & Co. Inc. (800 758-5378 toll free or 212 269-5550 collect) is the information agent and tender agent.

Orbital Sciences develops and manufactures small rockets and space systems and is based in Dulles, Va.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.