QCOM vender financing with G*
Globalstar Finalized $531.1M In Vendor Financing In
May
Wednesday, May 24, 2000 11:25 AM
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WASHINGTON (Dow Jones)--Globalstar Telecommunications Ltd. (GSTRF, news,
msgs) finalized $531.1 million of vendor financing agreements with Qualcomm Corp.
(QCOM, news, msgs) in May, according to Loral Space & Communications Ltd.'s
(LOR, news, msgs) quarterly report filed with the Securities and Exchange
Commission.
The agreement replaces Globalstar's previous $100 million vendor financing
arrangement with Qualcomm, according to the May 15 filing.
The vendor financing bears interest at 6% and matures on Aug. 15, 2003. As of May 5,
$482 million was outstanding under the loan.
Globalstar, San Jose, is a communications partnership led by Loral.
In connection with the agreement, Qualcomm received warrants to purchase nearly 3.5
million Globalstar partnership interests at an exercise price of $42.25. Half of the
warrants will be vested on the closing date of the loan, with 50% of the remaining
warrants vesting on Sept. 1, 2000, and the rest vesting on Sept. 1, 2001. The warrants
expire in 2007.
Loral noted in its quarterly report that it will guarantee 50% of any amount outstanding
under the vendor financing that exceeds the amount outstanding under Globalstar's
$500 million credit facility, currently $31.1 million.
Loral is a New York-based technology company that concentrates mainly on satellite
manufacturing and satellite-based services.
-Todd Goren; Dow Jones Newswires/Federal Filings Business |
