Orbital ATK, Inc. (NYSE: OA) said it has announced an offering of USD400 million aggregate principal amount of senior notes due 2023 in a private placement.
The 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.
Concurrently with the offering, Orbital ATK is seeking to enter into new senior secured credit facilities, consisting of an USD800.0 million term loan facility and a USD1,000.0 million revolving credit facility.
Orbital ATK expects to enter into the new credit facility concurrently with the closing of the offering, but the offering is not contingent upon the new credit facility.
The company said it intends to use the net proceeds from the offering, together with borrowings under the new credit facility, to repay all of the borrowings under its existing senior secured credit facilities and to pay related fees and expenses. The balance of the net proceeds, if any, are promised for general corporate purposes.
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 US and in several international locations.