Globalstar arranges $250 million bank financing

Business Wire, Oct 3, 1995

NEW YORK--(BUSINESS WIRE)--Oct. 3, 1995--Globalstar (NASDAQ:GSTRF) announced today that it has decided to proceed with a $250 million bank financing, led by Chemical Bank, which provides Globalstar with an attractive source of financing. Globalstar will, therefore, not complete an alternative, more costly private offering of high-yield debt securities.

The bank facility will be drawn down as needed and will extend Globalstar's financing options and flexibility into the second half of 1996. Globalstar's strategic partners, led by Loral Corporation, will guarantee the loan. Globalstar noted it has no near-term need for the funds, and that, taking into consideration the bank facility, its remaining external financing requirements are approximately $600 million for the $2 billion Globalstar project.

The company's development, manufacturing process, launch scenario and business plan schedule are on schedule and the system will begin launching its satellites in 1997 and initiate service in 1998.

CONTACT: Tom Ross

Globalstar, 212/697-1105

or

James Fingeroth

Kekst & Company, 212/593-2655