By: tensforme
Reply To: None Tuesday, 16 May 2000 at 1:41 PM EDT
Post # of 6175
In case you were wondering if G* concluded the financing credit facility with Qualcomm, and you curious about that odd 3,500,000 trade a few days back that was placed and
cancelled and then re-placed the following day.
From GLOBALSTAR TELECOMMUNICATIONS LTD
Form: 10-Q Filing Date: 5/15/2000
freeedgar.com.
In May 2000, Globalstar finalized $531.1 million of vendor financing arrangements with Qualcomm that replaces the previous $100 million vendor financing agreement. The vendor financing bears interest at 6%, matures on August 15, 2003 and requires repayment pro rata with the term loans under Globalstar's $500 million credit facility. As of May 5, 2000, $482 million was outstanding under this facility. In connection with this agreement, Qualcomm received warrants to purchase 3,450,000 Globalstar partnership interests at an exercise price of $42.25 per interest. The exercise price was determined by reference to the fair market value of GTL's common stock on the closing date of the vendor financing, based on an approximate one partnership interest for four shares of GTL common stock. Fifty percent of the warrants vested on the closing date. The remaining 50% will vest generally in two equal installments on September 1, 2000 and September 1, 2001. The warrants will expire in 2007.
(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy)
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