To: Rocket Scientist who wrote (4581 ) 9/16/1998 7:10:00 PM From: Geoff Read Replies (1) | Respond to
RS - Remember I am trying to look at a worst case scenario for LOR, so that we can properly value the company. If G*'s partners balk at helping it gain the needed funding, LOR will be the one that will take up the slack. Globalstar expects to raise additional funds prior to the full constellation date in the form of service provider payments from prospective service providers in other territories throughout the world. Globalstar has entered into an agreement with a bank syndicate for a $250 million credit facility (the "Globalstar Credit Agreement") expiring December 15, 2000, and also expects to utilize approximately $353 million of committed vendor financing. Existing indebtedness includes the $500 million aggregate principal amount of Globalstar's 11 3/8% Senior Notes issued in February 1997 (the "11 3/8% Senior Notes"), the $325 million aggregate principal amount of Globalstar's 11 1/4% Senior Notes issued in June 1997 (the "11 1/4% Senior Notes") and the $325 million aggregate principal amount of Globalstar's 10 3/4% Senior Notes issued in October 1997 (the "10 3/4% Senior Notes"). As a result, Globalstar is highly leveraged. Globalstar will be dependent on its cash flow from operations to service this debt. Any delay in the commencement of Globalstar operations will adversely affect Globalstar's ability to service its debt obligations.
