Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 56.68

+0.2%

Nov 20 3:59 PM EST

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To: Rocket Scientist who wrote (19336)	11/17/2000 3:04:41 PM
From: pcstel	Read Replies (1) of 29987

RS.. So now the questions comes into play!! What does LORAL receive in exchange for the 500 million in Financing?? I mean... LORAL should receive something!! Right!! So let's revisit the QCOM Financing deal!! (Get your HP 11c RPN Calculator out on this one rf_hombre... In May... Qualcomm provided 500 Million of Vendor Financing (a Loan) to Globalstar. In exchange Qualcomm received warrants for something like 3.4 million partnership interests. At the time.. The partnership interests were worth about $43 dollars per interest. Value of the transaction was about 146 million dollars given that GSTRF stock was trading @ $10. So now LOR has also provided a 500 Million dollar 3 year loan to Globalstar. How much should LOR receive for it's act. Well, I would think that LOR should receive at least an equal amount to that Qualcomm received. So a value of 146 million dollars in partnership interests... So but, now GSTRF is trading at $2 1/2, or about $10 per Partnership interest. So we divide 146 million dollars by $10 per partnership interest gives us 14.6 million partnership interests. Given that each partnership interest is worth about 4 common shares.. Loral should receive the equivalent of 58 million shares of GLP in return for arranging the loan.. That would be worth about 15% or the company... Of course the loan still has to be re-paid. Hopefully... Does that sound about right RS?? PCSTEL

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