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Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: Angelo J Cici who wrote (2078)	3/2/1998 12:34:00 AM
From: Snake	Read Replies (1) \| Respond to of 10852

$250 million in debt, over a billion $ in equity. Not too shabby. Only entities in which Loral has less than 50% interest has some debt (i.e. Satmex, G), except Orion. It is not unusual for companies in Loral and subs business to use debt to finance. Less risk to shareholders. If the project is successful, debt is not a problem. If not successful, minimum investment lost. Loral has large capital though, and used much of this to buy more G stock and units, Skynet, fund initial contributions to Satmex, startegically invest in CD Radio and etc. You usually only worry about debt if there is no capital invested or if the returns from the project can't pay the debt. Neither is the case with Loral. $16 billion would be a long way away. Angelo, thanks for a real business question instead of praising your favorite investment. These types of questions do raise valid concerns.