Orbimage Spreads Out OrbView-5 Funding

Orbimage Inc. [ORBM] detailed its plans to raise the necessary funds to launch the OrbView-5 satellite in the first quarter of 2007 to meet the requirements of the recently won NextView second-vendor contract. The company estimates that the satellite, including financing and launch insurance costs, will run about $502 million. Orbimage will use funds from the NextView contract to pay for its share of the project along with offering $65 million in equity, issuing $155 million of senior subordinated notes, and drawing $45 million in cash flow from existing operations.