Globalstar to Sell $350,000,000 of Convertible Preferred Stock in a Rule 144A Offering.
NEW YORK--(BUSINESS WIRE)--Jan. 7, 1999--Globalstar Telecommunications Limited (GTL GTL - Gunning Transceiver Logic ) announced today that it plans to sell $350 million of Convertible Preferred Stock Convertible Preferred Stock
Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". in an offering exempt from registration. Loral Space & Communications, which owns 42% of Globalstar L.P., will purchase $150 million of the $350 million of Convertible Preferred Stock offered.
GTL will apply the proceeds to purchase Convertible Preferred Partnership A preferred partner agreement normally refers to an agreement between a vendor (service provider) and those who are allowed to on-sell its products. In line with this agreement there are normally some prerequisites that the partner must meet to become a preferred partner. Interests in Globalstar, L.P. Globalstar L.P., in turn, will apply the proceeds from the sale of the Convertible Preferred Partnership Interests towards the continued construction and deployment of its worldwide, low-earth orbit satellite-based digital telecommunications system.
The Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders.
Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. will be offered only to qualified institutional buyers pursuant to Rule 144A Rule 144A
A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. , and to certain persons in offshore transactions pursuant to Regulation S under the Securities Act of 1933. The Preferred Stock has not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities.