NEW YORK, June 5 /PRNewswire-FirstCall/ -- Loral Space & Communications Inc. (NASDAQ:LORL) today announced that its subsidiary, Loral Skynet Corporation, has initiated the redemption of all of its outstanding 14% senior secured cash/PIK notes due 2015. The redemption date will be September 5, 2007, and the redemption price will be equal to 110% of the principal amount of the notes, plus accrued and unpaid interest up to, but not including, the redemption date.
The aggregate outstanding principal amount of the notes is $126,000,000.
Redemption of the notes is pursuant to the note's indenture, dated as of November 21, 2005. Pursuant to the terms of the indenture, the redemption will occur unless holders of at least two-thirds of the principal amount of the notes have objected to the redemption within 20 business days following the date the redemption notice is sent to them by the trustee.
The redemption is in connection with the previously announced transaction whereby Loral will contribute its Loral Skynet business to a joint venture company formed by Loral and its partner, PSP Investments, which has agreed to acquire 100 percent of the stock of Telesat Canada from BCE, Inc. (TSX/NYSE: BCE).
Loral Space & Communications is a satellite communications company. It is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications including direct-to-home television, broadband communications, wireless telephony, weather monitoring and air traffic management. Loral also owns and operates a fleet of telecommunications satellites used to broadcast video entertainment programming, distribute broadband data, and provide access to Internet services and other value-added communications services.
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, Loral Space & Communications Inc. or its representatives have made or may make forward- looking statements, orally or in writing, which may be included in, but are not limited to, various filings made from time to time with the Securities and Exchange Commission, press releases or oral statements made with the approval of an authorized executive officer of the company. Actual results could differ materially from those projected or suggested in any forward-looking statements as a result of a wide variety of factors and conditions. Many of these factors and conditions are described under the caption "Risk Factors" in the company's annual report on Form 10-K for the fiscal year ended December 31, 2006 and its quarterly reports on Form 10-Q for subsequent periods. The reader is specifically referred to these documents, as well as the company's other filings with the Securities and Exchange Commission. DATASOURCE: Loral Space & Communications Inc.
CONTACT: John McCarthy for Loral Space & Communications Inc., +1-212-338-5345 Web site: http://www.loral.com/
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