Valueman,
From your #1746 post, you mentioned 42 million "fully diluted" GSTRF shares. How did you come up with this 42 million shares?
"The fully diluted total number of Globalstar LP shares is 116 million, after conversion of all warrants and CPEOs. Loral owns a fully diluted total of 44 million LP shares, or 38%. Their ownerships consists of G* common shares, warrants, LP units, and G* conv. preferred CPEOs. The publicly traded G* consists of a fully diluted 42 million LP units, or 36% of total."
From SEC 10Q reports on 11/26/97,
"At September 30, 1997, GTL held 29.3% of the ordinary partnership interests and 100% of the Redeemable Preferred Partnership Interests in Globalstar, see Note 4. "
From Subsequent Events Notes,
"9. SUBSEQUENT EVENTS
On October 29, 1997, Globalstar sold $325 million principal amount of 10 3/4% Senior Notes due 2004 in a private offering."
5. SENIOR NOTES AND WARRANTS
On February 13, 1997, GTL and Globalstar sold units consisting of $500
million aggregate principal amount of Globalstar's 11 3/8% Senior Notes due 2004 and warrants to purchase 2,064,500 shares of GTL common stock (as adjusted for two-for-one stock split, see Note 3) in a private offering. ....... The warrants are exercisable on or after February 19, 1998 at a price of $34.7875 per share (as adjusted for two-for-one stock split, see Note 3) and expire on February 15, 2004. The warrants represent approximately 1.7% of Globalstar's total partnership interests on a fully diluted basis"
I can only find 116 million * 29.3% = about 34 million public traded shares unless the subsequent events also called for a stock purchase. In fact, I only see 30.6 million shares public shares outstanding after the previous split. And I think the difference (34 - 30.6 million) represents a portion of diluted shares. Add the additional 2 million shares from Note 5. It still does not come out correct.
Please comments.
Brian H. |
