ATK Raises $280 Million in Debt Sale After Lay-Offs
[Satellite TODAY 10-15-10] After laying off hundreds of its employees last month, rocket booster manufacturer ATK raised about $280 million in a 2.75 percent senior note debt sale that ended Oct. 14.
On Sept. 30, ATK Aerospace Systems dismissed 414 engineers, factory workers and other employees at three northern Utah locations due to “uncertainty over the future of the U.S. space program and the phase-out of the space shuttle program,” according to a statement from ATK Spokesman George Torres.
However, analysts upgraded their positions on the company after the debt sale. Analyst firm KeyBanc now expects ATK’s 2011 EBITDA to hit $622 million. “Although the company does face near-term challenges in the form of NASA revenue uncertainty and a peak ammunition environment, we believe valuation at current levels is compelling and the risk/reward ratio is advantageous,” the firm said in a statement.