Breeze-Eastern Corporation is the world's leading designer and manufacturer of sophisticated lifting devices for military and civilian aircraft including rescue hoists cargo hooks and weapons-lifting systems. Breeze-Eastern is the worldwide supplier of electric and hydraulic Rescue Hoist Systems for helicopters. On many customer programs companies products are supplied on a sole source basis and are utilized throughout the long life-cycle of these products. There position principally as a sole source supplier continues as they support there customers with the sales of spare parts and product upgrades. Breeze-Eastern Corporation aggressively updates its existing products in keeping with changing mission and customer requirements to maintain and increase market share for systems products and spare parts. These qualified and proprietary products support our long-term growth objectives. BreezeEastern Corp. has a market cap of $60.4 million; its shares were traded at around $6.45 with a P/E ratio of 11.94 and P/S ratio of 0.8.
Highlight of Business Operations:Net Sales. Our net sales decreased to $13.4 million in the first quarter of fiscal 2010, a decrease of $0.6 million from net sales of $14.0 million in the first quarter of fiscal 2009. The $0.7 million decrease in sales of new equipment for the first quarter of fiscal 2010 as compared to the same period last year was driven primarily by $0.5 million lower shipments in the cargo hook operating segment and $0.2 million in the hoist and winch operating segment. We had no sales of new equipment in the weapons handling operating segment during the first three months of fiscal 2010 and fiscal 2009.
New orders. New orders received during the first quarter of fiscal 2010 totaled $15.6 million, as compared with $23.0 million in the first quarter of fiscal 2009. Orders for new equipment in the hoist and winch operating segment decreased $3.8 million despite orders we received during the first three months of fiscal 2010 totaling $2.4 million for the system design and development of a recovery winch for a fixed wing aircraft being developed for the U.S. Army and Air Force under the Joint Cargo Aircraft Program, and $2.9 million in orders for new equipment in the hoist and winch operating segment for the A109, A119 and AW139 Programs. Orders for new equipment in the cargo hook operating segment decreased $4.1 million for the first three months of fiscal 2010 as compared to the same prior year period.
Backlog. Backlog at June 28, 2009 was $133.3 million, an increase of $2.3 million from the $131.0 million at March 31, 2009. Increases in backlog are mainly attributable to a $2.4 million contract for the system design and development of a recovery winch for a fixed wing aircraft being developed for the U.S. Army and Air Force under the Joint Cargo Aircraft Program, and $2.9 million in orders for new equipment in the hoist and winch operating segment for the A109, A119 and AW139 Programs. The offsetting decrease is attributable to previously scheduled shipments. The backlog at June 28, 2009 includes approximately $65.0 million relating to the Airbus A400M military transport aircraft, which per our contract with Airbus is scheduled to commence shipping in late calendar 2009 and continue through 2020. There have been recent reports by analysts that there is a delay in the production schedule for the Airbus A400M military transport aircraft. Notwithstanding these reports, we have not to date received notification from Airbus that there is a significant delay in delivering our equipment for this program.
In May, 2009 we executed a 10 year lease for a facility in Whippany, New Jersey, which will be better suited to our current and expected needs, and we expect to initiate the relocation to the new site during the third quarter, and complete it in the fourth quarter, of fiscal 2010. The lease agreement calls for monthly rental payments of approximately $67 thousand commencing January 2010 through the fifth anniversary of the fixed rent commencement date and approximately $77 thousand per month from January 2015 through the end of the lease term. While the relocation will require a cash outlay of approximately $5.0 million to outfit the new facility, we expect to continue our debt reduction program with a targeted principal reduction of our Senior Credit Facility in the area of $5.0 million to $6.0 million in fiscal 2010. Aside from the actual cost of the physical move to the new location which is estimated to be $0.8 million, we expect the additional costs related to the occupancy of the new facility to be approximately $0.4 million in fiscal 2010 as compared to occupancy costs expensed in fiscal 2009. The occupancy costs associated with the new facility is expected to increase approximately $0.7 million in fiscal 2011 as compared to fiscal 2010.
On August 28, 2008, we refinanced and paid in full our Former Senior Credit Facility (as defined below) with a new 60 month, $33.0 million senior credit facility consisting of a $10.0 million revolving line of credit and term loans totaling $23.0 million (the Senior Credit Facility). As a result of this refinancing, in the second quarter of fiscal 2009, we recorded a pre-tax charge of $0.6 million consisting of $0.2 million for the write-off of unamortized debt issue costs and $0.4 million for the payment of a pre-payment premium. The term loan requires quarterly principal payments of approximately $0.8 million over the term of the loan with the remainder of the term loan due at maturity. Accordingly, the balance sheet reflects $3.3 million of current maturities due under the term loan of the Senior Credit Facility as of June 28, 2009.
We continue to participate in environmental assessments and remediation work at eleven locations, including certain former facilities. Due to the nature of environmental remediation and monitoring work, such activities can extend for up to 30 years, depending upon the nature of the work, the substances involved, and the regulatory requirements associated with each site. In calculating the net present value (where appropriate) of those costs expected to be incurred in the future, we used a discount rate of 4.37%, which is the 20 year Treasury Bill rate at the end of the fiscal first quarter and represents the risk free rate for the 20 years those costs are expected to be paid. We believe that the application of this rate produces a result which approximates the amount that would hypothetically satisfy our liability in an arms-length transaction. Based on the above, we estimate the current range of undiscounted cost for remediation and monitoring to be between $5.4 million and $9.4 million with an undiscounted amount of $6.2 million to be most probable. Current estimates for expenditures, net of recoveries pursuant to cost sharing agreements, for each of the five succeeding fiscal years are $1.7 million, $0.6 million, $1.1 million, $0.6 million, and $0.5 million, respectively, with $1.7 million payable thereafter. Of the total undiscounted costs, we estimate that approximately 50% will relate to remediation activities and that 50% will be associated with monitoring activities.
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