GeoEye Makes Final Debt Payment For The Purchase Of Space Imaging

GeoEye has announced the final payment on the $50 million credit facility that it drew down in January 2006 to fund the acquisition of the assets of Colorado-based Space Imaging. While the two and one-half year facility did not have an amortization repayment schedule, it was structured to be repaid from excess cash flow generated by the assets purchased from Space Imaging.

 

Given the performance of the operation, the company has been able to repay this facility with cash flow generated within calendar year 2006. In conjunction with this repayment, the preferred stock that was issued in connection with the loan will be cancelled.

 

Matt O’Connell, GeoEye’s president and chief executive officer said, “Our board of directors and executive team are very pleased that the company’s and our employees’ performance have enabled us to repay this loan in such a short period of time – just about a year after the completion of the Space Imaging acquisition.”

 

“After completing the Nasdaq listing last fall and repaying this debt, the company is now positioned to seek new opportunities and growth,” stated Henry Dubois, GeoEye’s executive vice president and chief financial officer.

 

Bill Schuster, GeoEye’s chief operating officer said, “The integration of Space Imaging is complete and the team is now in place across all of our operational locations to support GeoEye-1 when launched later this year.
The IKONOS satellite, its 255 million square kilometer archive, and, most importantly, the top-notch employees were a terrific investment from which we continue to find value,” he said.

 

(Source GeoEye and Spacemart)