ORBIMAGE Inc. announced today that the record date for its previously announced rights offering to its shareholders will be February 10, 2005. Holders of the Company’s common stock on the record date will receive rights to purchase in aggregate 3.25 million investment units (each unit consisting of one share of common stock and one five year warrant to purchase a share of common stock at $10.00) for a price per unit of $10.00.
The sale of the 3.25 million units in the rights offering will represent the second tranche of equity financing for the NextView satellite project that was awarded to ORBIMAGE by the National Geospatial-Intelligence Agency (“NGA”). As previously announced, ORBIMAGE entered into definitive agreements with a group of investors pursuant to which those investors purchased 3.25 million investment units for $10.00 per unit in a private sale. If the rights offering is not fully subscribed by shareholders, these private investors have agreed in the definitive agreements to backstop the rights offering.
The rights offering by the Company will be conducted only pursuant to an offering registered under the Securities Act of 1933, and this announcement of the record date for the proposed rights offering does not constitute an offer of any securities for sale.
As previously announced, the Company estimates that its total project cost (including financing and launch insurance costs) to bring the OrbView-5 satellite into service in the first quarter of 2007 will be approximately $502 million. In order to perform its obligations under the NextView contract, ORBIMAGE will fund its cost share for the project through a combination of an equity offering of $65 million (as described above), an issuance of $155 million of senior subordinated indebtedness, and $45 million in cash flow from existing operations.
About ORBIMAGE:
ORBIMAGE is a leading global provider of Earth imagery products and services, with digital remote sensing satellites and an integrated worldwide image receiving, processing and distribution network. In addition to the high- resolution OrbView-3 satellite, ORBIMAGE operates the OrbView-2 ocean and land multispectral imaging satellite and the SeaStar Fisheries Information Service, which provides maps derived from essential oceanographic information to aid in commercial fishing. ORBIMAGE also produces value-added imagery products and advanced photogrammetric engineering services at its St. Louis facility. The company distributes its products directly to the U.S. government for national security and related mapping applications. Commercial sales are handled through a worldwide network of value-added resellers, regional distributors, sales agents, and select strategic partners. The company is currently building a next-generation satellite, OrbView-5, which it plans to have in operation early in 2007.
For more information about ORBIMAGE, please see our web site at http://www.orbimage.com.
