Intelsat completes acquisition
of Loral satellites
INTELSAT NEWS RELEASE
Posted: March 17, 2004
Intelsat, Ltd. today announced that it has completed its acquisition of
the North American satellites and related customer contracts of
Loral Space & Communications Corporation. The $961.1 million
purchase enhances Intelsat's global market position by adding full
coverage of North America to the Intelsat fleet and expanding its
customer base in the broadcasting, cable television and corporate
networking segments.
Upon the closing, Intelsat paid $961.1 million in cash for the assets
acquired under the purchase agreement with Loral. This price
reflects performance-related and other adjustments to the $1.025
billion base purchase price set forth in the asset purchase
agreement. In connection with the closing, and related to the failure
last year of the Telstar 4 satellite, Intelsat was assigned Loral's
rights to receive insurance proceeds (net of currently expected
warranty payments) of up to $140 million, which would further
reduce the total consideration for these assets.
"The addition of the Loral assets fulfills key strategic priorities for
building our business," said Conny Kullman, Chief Executive Officer
of Intelsat. "These satellites enhance our worldwide network
coverage and immediately establish us as a serious competitor in the
North American video market."
Mr. Kullman continued, "Our focus now is on providing a seamless
and efficient transition for all Loral customers that we have
acquired. These assets are an excellent fit with our existing
network, and we expect the transition to move smoothly. With this
acquisition complete, Intelsat is now able to provide reliable,
one-stop shopping for broadcasters or other companies needing to
connect from or to almost any point on Earth."
In addition to adding prime North American coverage to the Intelsat
fleet, the assets add important Ku-band capacity to serve Latin
America, further enhancing Intelsat's global, end-to-end satellite and
land-based network.
The four in-orbit satellites and one satellite under construction that
Intelsat has acquired have been renamed as noted below, with the
orbital designation to remain in degrees West. Intelsat has also
acquired rights to use the 77ºW orbital location.
Location: New Name: Old Name:
97 W Intelsat Americas 5 or IA-5 Telstar 5
93 W Intelsat Americas 6 or IA-6 Telstar 6
129 W Intelsat Americas 7 or IA-7 Telstar 7
121 W Intelsat Americas 13 or IA-13 Telstar 13
To be launched in the third quarter of 2004:
89 W Intelsat Americas 8 or IA-8 Telstar 8
Communications operations and customer support will now be
managed by Intelsat, with support from Loral for a six-month
transition period. Command and control of the Intelsat Americas
satellites will be transitioned to Intelsat's satellite control center over
the next 12 to 18 months.
About Intelsat
Building on 40 Years of Leadership. As a global communications
leader with 40 years of experience, Intelsat helps service providers,
broadcasters, corporations and governments deliver information and
entertainment anywhere in the world, instantly, securely and
reliably. Intelsat's global reach and expanding solutions portfolio
enable customers to enhance their communications networks,
venture into new markets and grow their businesses with
confidence. |
