( BW)(NY-LORAL)(LOR) Loral Purchases Globalstar Credit Facility and Cancels Related Guarantee
Business Editors
NEW YORK--(BUSINESS WIRE)--Nov. 17, 2000--Loral Space & Communications (NYSE:LOR) announced today that it has purchased all of a bank credit facility under which Globalstar (NASDAQ: GSTRF) had borrowed $500 million and which was guaranteed by Loral. The purchase was financed by a new $500 million three-year secured credit facility which Loral arranged with a group of banks.
This new facility is secured by the same collateral that had been used to secure Loral's guarantee of the Globalstar credit facility.
The terms and conditions of the Globalstar facility purchased by Loral remain unchanged.
This new arrangement resolves the obligation of Loral's guarantee and does not diminish Loral's existing capabilities or resources.
Loral Space & Communications is a high technology company that concentrates primarily on satellite manufacturing and satellite-based services, including transponder leasing and value-added services, domestic and international corporate data networks, global wireless telephony, broadband data transmission and content services, Internet services, and international direct-to-home satellite services. For more information, visit Loral's web site at www.loral.com.
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, from time to time, Loral Space & Communications Ltd. or its representatives have made or may make forward-looking statements, orally or in writing. Such forward-looking statements may be included in, but are not limited to, various filings made by the company with the Securities and Exchange Commission, press releases or oral statements made with the approval of an authorized executive officer of the company. Actual results could differ materially from those projected or suggested in any forward-looking statements as a result of a wide variety of factors and conditions. These factors and conditions have been described in the section of the company's annual report on Form 10-K for the fiscal year ended December 31, 1999, entitled "Certain Factors That May Affect Future Results." In addition, these factors and conditions have been described with particular regard to the company's interest in Globalstar, L.P. ("Globalstar") and Globalstar Telecommunications Limited ("GTL"), in the section of the annual report on Form 10-K of Globalstar and GTL for the fiscal year ended December 31, 1999, entitled "Certain Factors That May Affect Future Results." The reader is specifically referred to these documents regarding the factors and conditions that may affect future results.
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CONTACT: Loral Space & Communications, New York
Jeanette Clonan/Tony Doumlele, 212/697-1105
KEYWORD: NEW YORK
INDUSTRY KEYWORD: AEROSPACE/DEFENSE COMPUTERS/ELECTRONICS
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