Odd, but I don't see G*'s press release on the financing posted. For the record:
And, a question--how many shares do the warrants represent? (We're back to the dilution question again).
Globalstar Arranges $500 Million Credit Facility
Business Wire - June 23, 1999 14:01
NEW YORK--(BUSINESS WIRE)--June 23, 1999--Globalstar (GSTRF:NASDAQ) announced
today that it has arranged a $500 million credit facility for the build-out of the Globalstar system. The
facility will be fully underwritten by Bank of America NT&SA.
The credit facility is guaranteed by two subsidiaries of Loral Space & Communications (NYSE:LOR),
which will pledge certain assets to support the transaction. Loral will receive consideration for its
support in the form of equity warrants. The transaction is expected to close in July, subject to certain
conditions.
"The attainment of this credit facility for Globalstar represents another important vote of confidence
from the financial community." stated Bernard L. Schwartz, Globalstar's chairman and chief executive
officer. "This credit facility, together with expected vendor financing, completes the funding
requirements for the Globalstar project," Mr. Schwartz continued. Including this credit facility, the
company has raised $3.8 billion for the development, construction and deployment of the Globalstar
system and for operating costs, budgeted debt service, system improvements and the development of
new features.
"Every element of the program is on track for the initiation of commercial service in September -
launches, phone production, gateway deployment, system testing and marketing programs," Mr.
Schwartz said. "We've come a long way in eight years and, along with our partners, are confident that
we'll meet our business plan milestones."
Globalstar expects to commence a regional roll-out of commercial service in September with 32
satellites and nine gateways providing more than ample coverage during the early subscriber acquisition
period. By the end of 1999, a total of 48 satellites plus four spares are to be on-orbit and
approximately 16 gateways in operation. The 22 remaining gateways are scheduled to come on stream
throughout the first several months of 2000. A sufficient number of telephones, manufactured by
Ericsson, Qualcomm and Telital, should be in the distribution pipeline in the fourth quarter to satisfy
expected demand, with telephone production ramping up to 40,000 units per month by early 2000.
The Globalstar system is designed to provide affordable satellite-based digital voice services to a
broad range of subscribers and users. Globalstar mobile and fixed-site telephones will meet the needs
of cellular users who roam outside of cellular territories, as well as residents of inadequately covered
areas who need dependable, basic telephony service.
Globalstar, led by founding partner Loral Space & Communications, is a partnership of the world's
leading telecommunications service providers and equipment manufacturers, including Qualcomm
Incorporated, AirTouch Communications, Alcatel, Alenia, China Telecom (HK), DACOM,
Daimler-Chrysler Aerospace, Elsacom (a Finmeccanica Company), France Telecom, Hyundai, Space
Systems/Loral and Vodafone. For more information, visit Globalstar's web site at
www.globalstar.com.
This release contains forward-looking statements, including statements regarding schedules for future
satellite launches and commencement of commercial service of the Globalstar system. These
forward-looking statements are based on a number of assumptions and actual results may be materially
different from those expressed or implied by such statements. For a description of factors which may
cause results for Globalstar to differ materially from those expressed or implied by such
forward-looking statements, please consult the Securities and Exchange Act filings of Globalstar
Telecommunications Limited. |
