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1. Background details
Orbital Corporation Limited also known as Orbital Engine Corporation
Limited pioneered by Ralph Sarich, is an Australian company which the headquarters
and the R&D centre in Perth, Western Australia. The company have 30 years of
experience in advanced technology and product development and their primary focus
is on engines and vehicle systems and they have a wide array of products utilising
Orbital technologies around the world. In addition, they provides world class
capabilities in design, development, testing and low volume manufacturing of
specialty engines, engine management systems, and other high value and high
performance products. They provide several of products such as clean engine
technologies and alternative fuel systems with reduced environmental impact from
gas emissions and improved fuel economy.
Their engineering group is focused on finding high efficiency, low emission,
and world class solutions for customers in automotive, powered recreation, industrial,
resources, government, aerospace, and in other segments. In addition, since 1996 the
Orbitals FlexDI
TM
technology "One engine - any fuel" ( a technology that purports to
improve emissions and fuel consumption in internal combustion engines designed to
accept any common fuel type) has been commercialised in the marine market and
subsequently in the motorcycle, recreational, and most recently in UAS (Unmanned
Aircraft Systems) propulsion markets.
Currently their chairman, also an Independent Non-Executive Director, DR.
Mervyn Thomas Jones joined the Board in March 2008, appointed Chairman on 3
September 2013. Dr Jones has more than 35 years experience as a consulting
engineer and as a senior executive. He has specific expertise in the development and
management of organic business growth in the Asia Pacific region, as well as
acquisition experience in both Australia and China. Dr Jones is also a director of a
number of non-listed and private companies.
Next is MR. Terry Stinson, the Chief Executive Officer and Managing
Director of Orbital. He holds a degree in Business Administration and Operations
Management from Marian University. He commenced at Orbital in 2008 bringing
over 30 years experience in R&D, engine development and manufacturing, and fuel
systems design and manufacturing. His extensive commercialization and management
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experience was gained through senior executive positions with Siemens VDO, as the
CEO of Synerject LLC and subsequent Board Directorship, and his role as VP
Manufacturing for Outboard Marine Corporation. In 1995, Mr Stinson was appointed
as President and CEO of METEOR, a JV company between Mercury Marine Division
of Brunswick Corporation and Orbital. He moved to Perth from the USA and
remained in that role for nearly five years, during which period METEOR became the
Synerject LLC joint venture business.
2. Brief overview of the facts of the deal
We are planning to offer an AUD$ 5 million multi-option facility deal for
five-year maturity to Orbital Corporation Limited. A multi-option facility is a deal
consists of a credit limit to Orbital together with a product that offers flexibility to
customer. The benefit of having this multi-option facility is there is no need to
renegotiate the contract when Orbital Corporation Limited require a different facility.
It is suitable to Orbital who require more than one lending account type and need to
switch between different account types. Multi-option facility also known as multiple
component facility.
The deal is to provide a cash advance facility to Orbital Corporation Limited
to smoothen the working capital of the company. The amount of money will be debit
into orbital account AUD$1million a year for the next consecutive 5years time. With
this amount of money, Orbital able to make payment to the supplier to maintain the
process of operation of the company. Of course the deal needed to be pay back with
principal plus interest for 5years time.
3. Overview of the borrower
The stock of Orbital is currently traded on the Australian Stock Exchange
(OEC) and the NYSE AMEX (OBT). Orbital is a leader in specialized engine and
vehicle systems. With more than 30 years of proven experience dedicated to engine
design and prototype manufacture, EMS calibration and optimization, testing for
performance, emissions and fuel consumption, Orbital has the capabilities to take
your engine from concept to product.
Achievement of orbital
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In 2003, the company was awarded a Banksia Award for its innovative
combustion technology, winning in the category of 'Leadership in Sustainable Product
Design'. (Banksia award is an award to support and recognise members of the
community for their positive contribution to the environment according to Banksia,
2014) The Orbital Redback heavy fuel engine using FlexDI was also chosen to power
an unmanned aerial vehicle (UAV) manufactured by AAIs Australian division
Aerosonde. Their latest achievement is in August 2013, Orbital announced that it had
been awarded an ANMP (Automotive New Markets Program) grant for the
development of a new flexible Engine Management System (EMS) and associated
Fuel System that can be used for a range of SUAS engines globally.
Existing Customers
In many years of operating, they have teamed with some companies. One of
the companies is Hirth, it has been in business since 1917 producing reputable 2-
stroke aircraft engines for ultra-lights, helicopters, hovercrafts, fire pumps,
amphibious aircrafts and UAVs. Hirth has teamed up with Orbital to apply air-
assisted direct injection to their 2-stroke aircraft engines to meet the global demand
for lightweight heavy fuel engines. Orbitals fuel injection technology enables reliable
spark ignition operation on heavy fuel such as JP5, JP8 and diesel. The same
technology has been in use since 1996 on consumer products to reduce emissions. The
consumer products that Hirth and Orbital DI Technology Driver is Reduced Exhaust
Emissions. They have supply engine to many well-known companies such as Mecury
Marine, Tohatsu Marine, Bombardier, Aprilla, Peugeot and Piaggio.