Alliant Techsystems Sporting reveals $750 million facility structure

By Sara Rosenberg

New York, May 2 - Alliant Techsystems Inc.'s Sporting Group's $750 million senior secured debt commitment is split between a $400 million revolver and a $350 million term loan, according to an 8-K filed with the Securities and Exchange Commission on Friday.

Bank of America Merrill Lynch is the lead bank on the deal.

Proceeds will be used to help fund the company's spinoff from Alliant Techsystems.

As part of the spinoff, Sporting will distribute a dividend to Alliant Techsystems who will then use those funds to repay some existing debt, including 6 7/8% senior subordinated notes due 2020.

Utah-based Sporting, which is being spun off to Alliant Techsystems shareholders, is an outdoor recreation products company with adjusted pro forma last-12-months December 2013 revenues of $2.2 billion and last-12-months December 2013 adjusted EBITDA of $361 million.

The spinoff will be immediately followed by a tax-free, all-stock merger between Alliant Techsystems' Aerospace and Defense Groups and Orbital Sciences Corp., at which point Alliant Techsystems will change its name to Orbital ATK Inc.

Under the agreement, Orbital shareholders will receive 0.449 of a share of Alliant Techsystems common stock for each share of Orbital common stock that they hold. Current Alliant Techsystems shareholders will own about 53.8% of Orbital ATK on a fully diluted basis, and current Orbital shareholders will own around 46.2%.

Around $1.7 billion of existing Alliant Techsystems debt will remain at Orbital ATK.

Dulles, Va.-based aerospace and defense company Orbital ATK has combined last-12-months December 2013 revenues of $4.5 billion and EBITDA of $585 million.

Closing on the transactions is expected by year-end, subject to customary conditions, including regulatory approvals and the approval of each of Alliant Techsystems' and Orbital's shareholders.

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