LEXINGTON, Mass., June 13 /PRNewswire-FirstCall/ --
Raytheon Company's (NYSE: RTN) wholly owned subsidiary, Raytheon Travel Air,
and the other investors in Flight Options LLC have completed a financial
recapitalization agreement that results in Raytheon owning approximately a 65
percent interest in Flight Options LLC.
As part of the recapitalization agreement, Raytheon exchanged certain
Flight Options LLC debt it holds for equity. Raytheon also has committed to
invest certain additional capital on an as needed basis over the next 18
months in Flight Options LLC and provide secured aircraft and retail financing
over the next three years. As a result of this transaction, Raytheon will
begin to consolidate Flight Options LLC's financial results and reduce its
reported aircraft backlog by approximately $850 million as previously
disclosed. Raytheon does not expect this agreement to have a material effect
on the company's financial position or results from operations in 2003.
"Raytheon is pleased to participate in the recapitalization of Flight
Options," said Ed Pliner, Raytheon's chief financial officer. "We believe
this recapitalization will provide Flight Options with the resources to
achieve its business objectives."
"Raytheon's investment will allow Flight Options to grow and continue to
exceed our customer's expectations for safety, service and value," said John
Nahill, chief executive officer of Flight Options LLC. "With this transaction
complete, we look forward to introducing new products and programs for our
owners, which will continue our tradition of bringing innovative and value
oriented products to the marketplace."
Other Flight Options LLC shareholders include Brantley Partners, Brantley
Capital and Monitor Clipper Equity Partners.
Raytheon Company, with 2002 sales of $16.8 billion, is an industry leader
in defense, government and commercial electronics, space, information
technology, technical services, and business and special mission aircraft.
With headquarters in Lexington, Mass., Raytheon employs more than 76,000
people worldwide.
Contact:
Amy Hosmer
781.860.2423
SOURCE Raytheon Company
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Related links:
http://www.raytheon.com
CONTACT:
Amy Hosmer of Raytheon Company,
+1-781-860-2423
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