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

To: Beefeater who wrote (2295)	3/20/1998 11:13:00 AM
From: Valueman	Read Replies (1) \| Respond to of 10852

S&P raises Orion Network <ONSI.O> ratings NEW YORK, March 16 - Standard & Poor's today raised Orion Network Systems Inc.'s (Orion) unsecured debt and corporate credit ratings to single-'B'-plus from single-'B'. Simultaneously, the company's ratings are removed from CreditWatch where they were placed on Oct. 7, 1997 following Loral Space & Communications Ltd.'s (double-'B'-minus corporate credit rating, developing outlook) announcement to acquire Orion for about $489 million in common stock. Orion's debt outstanding will consist of 11.25% senior notes due 2007 and 12.50% senior discount notes due 2007. This debt, which presently totals about $730 million, is not being assumed or guaranteed by Loral. Orion, a private satellite communications services company, will be a wholly owned subsidiary of Loral. The rating action reflects the benefits Orion will derive from its relationship with Loral in terms of increased financial flexibility, distribution channels, and international alliances. This is offset somewhat by Orion's limited operating history (Orion 1 became commercially operable in January 1995), its high debt leverage, and the risk associated with launching satellites. Nevertheless, Orion is focusing its strategy on a high growth niche market-private network communications and high speed data transmission, including Internet backbone and access services. Data transmission is anticipated to comprise 60% or more of revenues, and the remainder video distribution. Upon the successful commercial operation of the Orion 2 and 3 satellites, Orion will cover 85% of the world's population -- Europe, U.S., and Asia Pacific. Orion 2 and 3 are anticipated to be launched in the second quarter 1999 and the fourth quarter 1998, respectively. Orion is expected to complement Loral's Skynet satellite communications services subsidiary, which provides video, voice, and data transmission in the U.S. and Loral's 49% interest in Satelites Mexicanos S.A. de D.V. (single-'B'-plus corporate credit rating), which provides similar services in Mexico. Orion's debt leverage is expected to remain high until after the commercial operation of Orion 2 and 3. Debt to earnings before interest, taxes, depreciation and amortization (EBITDA) is expected to be in the 7 times (x) to 8x range in 1999 and then decline to the 4x to 5x range in 2000. OUTLOOK: DEVELOPING The outlook indicates that the company's rating can be raised or lowered. Orion's rating could be raised after the successful commercial operation of Orion 2 and 3 or if Loral's rating is upgraded. However, Orion's rating could be lowered if Orion 2 and 3 are not successfully launched or if Loral's rating is lowered.

To: Beefeater who wrote (2295)	3/20/1998 1:18:00 PM
From: Mr. Adrenaline	Read Replies (2) \| Respond to of 10852

I gotta put in my two cents about Readware. Ccryder is correct that a poster's genuineness comes through the test of time. In my book, Readware has passed this test. Nevertheless, he has said something's that are just plain wrong. But, hey. No one's perfect. Here's my impression: He knows quite a bit about the satellite business, and knows just enough about satellite/space technology to put his foot in his mouth on occasion. This Jupiter impact thing is a perfect example. A comet hitting Jupiter will affect the Jovian gravity about as much as spitting in the ocean will raise the sea level. As for myself, I learned a long time ago that I shouldn't say things I don't know. I have also learned that others have not learned this lesson. I think that Readware falls into the latter category. Whether it is because of arrogance or ignorance I don't know. That is not important. But what is important, in my opinion, is that sometimes Readware has been right on. He obviously puts in a lot of thouhgt/study into his posts. Also, I have a print out of a LOR share-price prediction he made about a year ago, and LOR has meet or exceeded those predictions. So, I absorb part of what he says, and filter out the fluff. The part I absorb I scrutinize with information that I obtain via other sources. For example, I wish to focus on something Readware said around the 1st of Feb. At that time G* was trying to get off the ground, and having weather problems, and also scheduling problems with a IRIDF launch out of Vandenburg. He made a comment about how things would likely get rescheduled, and then backed it up with the following remark, "I heard a tape of the conversation between the Iridium control center and the Globalstar control center". Well, I heard the conversation too, but first hand. And I was stunned that he had obtained a copy of the conversation. He definitely has some good connections. So Readware blew the lay off rumor. Maybe his informant was on vacation. If he is 50% right, then his information is valuable. The trick is going to be figuring out which 50% is right. Mr. A