LORAL BUYS GLOBALSTAR CREDIT FACILITY
Loral Space & Communications has acquired all of a bank credit facility under which Globalstar had borrowed $500 million (E593.02 million). The purchase was financed by a new $500 million three-year secured credit facility which Loral arranged with a group of banks.
This new facility is secured by the same collateral that had been used to secure Loral’s guarantee of the Globalstar credit facility. The terms and conditions of the Globalstar facility purchased by Loral remain unchanged. This new arrangement resolves the obligation of Loral’s guarantee and does not diminish Loral’s existing capabilities or resources.