Orbital Sciences Corporation and CCI International N.V. jointly announced today that Orbital has finalized its $150 million equity and debt investment agreement with CCI International and is progressing toward a 2001 deployment of the Constellation satellite telephone system’s space segment under a $450 million contract.
Orbital’s financial commitment includes $50 million in equity, giving it an approximate 40% ownership stake in CCI International, together with
$50 million in vendor financing and an option for an additional $50 million in equity financing. As previously announced in May, Orbital was selected to serve as space segment prime contractor to CCI International on its $850 million Constellation satellite telephone system.
“We are delighted to finalize our strategic partnership with Jerry Waylan
and his team at CCI International,” said Mr. David W. Thompson, Orbital’s
President and Chief Executive Officer. “In addition to the relatively low
capital investment requirements of its satellite system, CCI International has a seasoned management team, a sharp market focus, a low-risk technology approach and a strong set of strategic partners. This is the formula for success in today’s satellite services market,” added Mr. Thompson.
Speaking for CCI International, Dr. C. J. (Jerry) Waylan, President and
Chief Executive Officer, said, “We are excited that Orbital has shown its
support for our company’s vision. We are confident that this partnership will lead to the realization of a uniquely positioned and successful company.”
CCI International’s initial Constellation space and ground network will
consist of 12 Orbital-built satellites ringing the Earth’s equator in low-
altitude orbits, ground-based gateway switching stations strategically located throughout the world, a central satellite control and communications management facility and various types of subscriber telephones, including mobile handsets and fixed-site units. Later, in a phased deployment of additional satellites, the Constellation system will be expanded to provide continuous global coverage with similar satellite, ground systems and telephone technologies.
Beginning in 2001, CCI International’s affordable satellite telephony
services will be available to subscribers in the world’s equatorial regions, comprising over 75 countries. With a combined population of more than 1.8 billion people, these countries include Brazil, Mexico, Venezuela, India, Indonesia, Malaysia, Philippines, Australia and dozens more in Asia, South and Central America, Africa and the Middle East.
Constellation Communications Inc. (CCI) is a Delaware company formed in 1991 with headquarters in Fairfax, Virginia. Licensed in 1997 by the Federal Communications Commission to establish and operate global low-Earth orbit (LEO) satellite telephone systems, CCI established CCI International N.V. in the Netherlands Antilles to design, build and launch the satellites comprising the Constellation satellite system. CCI International’s shareholders include, in addition to Orbital, Bell Atlantic Global Wireless, Inc., Raytheon Systems Company and SpaceVest.
