Orbital Sciences lists options for $100 million convertibles

New York, March 27 - Orbital Sciences Corp. said the options it is examining for its $100 million of subordinated convertibles notes due Oct. 1, 2002 include raising new capital or carrying out an exchange.

The space technology and satellite company previously warned that its cash, operating cash flow and available borrowing capacity will not be enough to enable it to repay the convertibles at maturity, prompting its auditors to issue a warning about its ability to continue as a going concern.

In a filing with the Securities and Exchange Commission Wednesday, Orbital Sciences said it is looking at various alternatives to repay or restructure the notes.

Options it listed are raising additional equity and/or debt capital to repay the notes or carrying out an exchange under which it would offer new debt and/or equity to noteholders.

However Orbital Sciences warned it could give no assurance that it could successfully pursue any of the options and added that if it defaults on the convertibles it will also be in default on its primary credit facility.

At Dec. 31, 2001, Orbital Sciences had $63.2 million of unrestricted cash and equivalents.

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