US - Alliant Techsystems is to pour US$300m into its DB pension plan as part of a "capital deployment strategy to increase long-term earnings".
The $300m will be raised from the proceeds of a convertible debt offering launched on September 6 and will bring total contributions to the pension plan to $385m by the end of the year.
Alliant (NYSE: ATK), which makes advanced weapons and space systems, also announced that it would "eliminate" the defined benefit pension plan for any non-union employee recruited after January 1 2007 and would replace it with an "enhanced" defined contribution plan.
The company aims to "fully fund the plan, reduce future pension expenses and eliminate volatility of future retirement benefit costs" with a view to providing ATK shareholders "with significant earnings per share growth while substantially increasing the company's future cash flow from operations".
Other measures outlined in the strategy include the repurchase of around 1.25 million shares for $100m.
ATK employs around 15,000 people across 22 states and is worth $3.4bn.
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