GeoEye Inks A Financial Deal With Cerberus (GEOY)

GeoEye, Inc. (NASDAQ: GEOY) has signed a new financing deal with private equity firm Cerberus Capital Management. The deal is likely to help GeoEye, Inc. in winning a federal contract.

The satellite imagery company has recently submitted a bid for the government's EnhancedView contract. According to the terms of the contract, the bidding companies are required to provide a letter of credit as collateral.

According to the agreement, GeoEye will sell its preferred shares to Cerberus for $112.1 million, in case it wins the contract. However, if GeoEye loses the contract, Cerberus will get 80,000 preferred shares for $78 million.