L-3 Communications announced in June that its Board of Directors had approved the spin-off of systems engineering company Engility Holdings. It has now been announced that Engility will replace Savient Pharmaceuticals in the S&P SmallCap 600 index after the close of trading on Tuesday, July 17.
The spin-off is expected to close around that date. Engility says it will be an independent company, effective July 18.
"The Board's actions reflect the culmination of a thorough strategic evaluation of the company's businesses," said L-3 CEO Michael T. Strianese last month. "We believe that the spin-off of Engility is in the best interests of our company and shareholders. Engility will now be able to pursue new business opportunities unconstrained by organizational conflict of interest regulations and operate in a more cost-competitive manner."
"Additionally, L-3 will benefit from an enhanced focus on value-added solutions and its market-leading products and systems," he added.
The spin-off is pending final approvals. L-3 will remain in the S&P 500 index.
Engility will be added to the S&P SmallCap 600 GICS (Global Industry Classification Standard) Aerospace & Defense Sub-Industry index.
When the Board approved the spin-off, L-3 said Engility will retain approximately $10 million of cash on its balance sheet and incur approximately $345 million of debt financing.