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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: Valueman who wrote (5325)	6/23/1999 2:18:00 PM
From: trenzich	Respond to of 29987

Globalstar Arranges $500 Million Credit Facility NEW YORK--(BUSINESS WIRE)--June 23, 1999--Globalstar (GSTRF:NASDAQ) announced today that it has arranged a $500 million credit facility for the build-out of the Globalstar system. The facility will be fully underwritten by Bank of America NT&SA. The credit facility is guaranteed by two subsidiaries of Loral Space & Communications (NYSE:LOR), which will pledge certain assets to support the transaction. Loral will receive consideration for its support in the form of equity warrants. The transaction is expected to close in July, subject to certain conditions. "The attainment of this credit facility for Globalstar represents another important vote of confidence from the financial community." stated Bernard L. Schwartz, Globalstar's chairman and chief executive officer. "This credit facility, together with expected vendor financing, completes the funding requirements for the Globalstar project," Mr. Schwartz continued. Including this credit facility, the company has raised $3.8 billion for the development, construction and deployment of the Globalstar system and for operating costs, budgeted debt service, system improvements and the development of new features. "Every element of the program is on track for the initiation of commercial service in September - launches, phone production, gateway deployment, system testing and marketing programs," Mr. Schwartz said. "We've come a long way in eight years and, along with our partners, are confident that we'll meet our business plan milestones." Globalstar expects to commence a regional roll-out of commercial service in September with 32 satellites and nine gateways providing more than ample coverage during the early subscriber acquisition period. By the end of 1999, a total of 48 satellites plus four spares are to be on-orbit and approximately 16 gateways in operation. The 22 remaining gateways are scheduled to come on stream throughout the first several months of 2000. A sufficient number of telephones, manufactured by Ericsson, Qualcomm and Telital, should be in the distribution pipeline in the fourth quarter to satisfy expected demand, with telephone production ramping up to 40,000 units per month by early 2000. The Globalstar system is designed to provide affordable satellite-based digital voice services to a broad range of subscribers and users. Globalstar mobile and fixed-site telephones will meet the needs of cellular users who roam outside of cellular territories, as well as residents of inadequately covered areas who need dependable, basic telephony service.