Bank of America has underwritten $500 million of senior secured credit facilities for the Globalstar mobile satellite system.
Banc of America Securities LLC will act as Sole Lead Arranger and Sole Book Runner on the facilities, which will be used to finance the build-out of the Globalstar Satellite System. Globalstar expects to commence the regional roll-out of its satellite-based, telephony service beginning in September 1999. The facilities have a bank loan rating of Ba3.
Globalstar and Bank of America will hold a bank meeting in New York on July 6, 1999, to formally launch the syndication and expect to close the facilities by July 31, 1999.
Globalstar, led by founding partner Loral Space & Communications Ltd., is a partnership of the world's leading telecommunications service providers and equipment manufacturers, including Qualcomm Incorporated, AirTouch Communications, Alcatel, Alenia, China Telecom (HK), DACOM, Daimler-Chrysler Aerospace, Elsacom (a Finmeccanica Company) France Telecom, Hyundai, Space Systems/Loral and Vodafone.
The Globalstar system is designed to provide affordable satellite-based digital voice services to a broad range of subscribers and users. Globalstar mobile and fixed-site telephones will meet the needs of cellular users who roam outside of cellular territories, as well as residents of inadequately covered areas who need dependable, basic telephony service.
