Text of "$105 million" (to be raised for Globalstar) story.
Tuesday September 19, 9:14 am Eastern Time
Press Release
Globalstar to Raise Up to $105 Million by Sales of Common
Stock in Tranches to Bear Stearns
NEW YORK--(BUSINESS WIRE)--Sept. 19, 2000--Globalstar Telecommunications Limited
(NASDAQ: GSTRF - news) today announced that it has entered into a purchase agreement with Bear Stearns, under which Bear Stearns has agreed to purchase, subject to certain conditions and over several tranches, up to $105 million of shares of GTL common stock. Bear Stearns will sell the shares of common stock it purchases directly to certain investors or in the market. The purchases will be made at prices based upon the market prices at the time of each tranche.
Globalstar Telecommunications Limited will use the proceeds from the sales to purchase partnership interests in Globalstar, L.P., which, in turn, will use the proceeds for general corporate purposes including capital expenditures, operations (including marketing and distribution of phones and services) and interest expense.
Globalstar Telecommunications Limited is a general partner of Globalstar, L.P., which has recently commenced operations of a global telecommunications network. Globalstar Telecommunications Limited operates as a holding company to permit public equity ownership in Globalstar, L.P. Globalstar, L.P. owns and operates a satellite constellation that forms the backbone of a global telecommunications network designed to serve virtually every populated area of the world.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the common stock in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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