-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OF0OnQBxo2WcRKrmc489exaPlBmIgOfjwDr6fpMmBbQ+4/KQ4dctBUE3e+ujjsWV ZXdU1hBtz4IIC/y4h/R71w== 0000950123-98-004423.txt : 19980504 0000950123-98-004423.hdr.sgml : 19980504 ACCESSION NUMBER: 0000950123-98-004423 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980402 ITEM INFORMATION: FILED AS OF DATE: 19980501 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: GLOBALSTAR TELECOMMUNICATIONS LTD CENTRAL INDEX KEY: 0000933401 STANDARD INDUSTRIAL CLASSIFICATION: RADIO TELEPHONE COMMUNICATIONS [4812] IRS NUMBER: 133795510 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-25456 FILM NUMBER: 98608810 BUSINESS ADDRESS: STREET 1: 600 THIRD AVENUE STREET 2: 36TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10016 BUSINESS PHONE: 2126971105 MAIL ADDRESS: STREET 1: 600 THIRD AVENUE CITY: NEW YORK STATE: NY ZIP: 10016 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GLOBALSTAR LP CENTRAL INDEX KEY: 0001037927 STANDARD INDUSTRIAL CLASSIFICATION: RADIO TELEPHONE COMMUNICATIONS [4812] IRS NUMBER: 133759024 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 333-25461 FILM NUMBER: 98608811 BUSINESS ADDRESS: STREET 1: 3200 ZARKEN R STREET 2: PO BOX 640670 CITY: SAN JOSE STATE: CA ZIP: 95164 BUSINESS PHONE: 4084735550 8-K 1 GLOBALSTAR TELECOMMUNICATIONS LTD/GLOBALSTAR L.P. 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): April 2, 1998 GLOBALSTAR TELECOMMUNICATIONS LIMITED (Exact name of registrant as specified in its charter)
Islands of Bermuda 0-25456 13-3795510 (State or other (Commission (IRS Employer jurisdiction of File Number) Identification incorporation) Number
Cedar House, 41 Cedar Avenue, Hamilton, Bermuda HM 12 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (441) 295-2244 GLOBALSTAR, L.P. (Exact name of registrant as specified in its charter)
Delaware 333-25461 13-3759824 (State or other (Commission (IRS Employer jurisdiction of File Number) Identification incorporation) Number
3200 Zanker Road, San Jose, California 95134 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (408) 933-4000 2 Item 5. Other Events. On April 27, 1998, the Board of Directors of Globalstar Telecommunications Limited ("GTL"), general partner of Globalstar, L.P. ("Globalstar"), approved the issuance, pending shareholder approval of a proposal to increase the number of GTL shares of common stock authorized for issuance from 200 million to 600 million and a proposal to amend the bye-laws of GTL to authorize the GTL Board of Directors to make stock distributions, of a stock dividend to shareholders consisting of one share of common stock for each outstanding share. At GTL's annual meeting held on April 28, 1998, shareholders approved this proposal. The stock dividend will be paid on June 8, 1998 to shareholders of record as of May 29, 1998. On April 24, 1998, Globalstar launched its second group of four satellites. On April 21, 1998, Globalstar announced that China Telecom (Hong Kong) Group Ltd. ("China Telecom") had exercised, effective April 8, 1998, its option to acquire 937,500 Globalstar ordinary partnership interests for a purchase price of $18,750,000. In addition, China Telecom has the right to acquire an additional 937,500 Globalstar ordinary partnership interests for $18,750,000 upon reaching certain target revenue levels. Globalstar had previously granted these options to China Telecom in connection with service provider arrangements in China under which China Telecommunications Broadcast Satellite Corporation ("ChinaSat") will act as the sole distributor of Globalstar services in China. On April 3, 1998, Globalstar and Globalstar service providers entered into contracts with Qualcomm Incorporated, L.M. Ericsson and Telital S.r.L. totaling $353 million for the initial manufacture and delivery of more than 300,000 production handheld and fixed user terminals. On April 2, 1998, GTL announced that it called for the redemption on April 30, 1998 of all of its $310,000,000 aggregate principal amount outstanding 6-1/2% convertible preferred equivalent obligations due 2006 (the "CPEOs"). Prior to the redemption date, holders of $295,117,000 aggregate principal amount of CPEOs converted their CPEOs into 9,676,399 shares of GTL common stock at a conversion price of $30.81 per share. GTL will redeem the remaining balance of $14,883,000 principal amount of CPEOs at 103% of their principal amount by the issuance of approximately 226,091 shares of GTL common stock. In addition, GTL is 3 issuing 269,700 shares of common stock in the aggregate ($.0435 per CPEO) as an interest make-whole payment to converting and redeeming holders (representing an interest make-whole payment of $2.68 per CPEO). As of April 1998, Globalstar's budgeted expenditures for the design, construction and deployment of the Globalstar System, including working capital, cash interest on borrowings and operating expenses increased from approximately $2.7 billion to approximately $2.8 billion, reflecting revised cost estimates from Qualcomm and other increased Globalstar expenditures. In addition to expenditures for operating costs, working capital and debt service, Globalstar anticipates additional expenditures on system software following the commencement of commercial service for the improvement of system functionality and the addition of new features in response to future marketplace demands. As of March 31, 1998, Globalstar had raised or received commitments for approximately $2.6 billion. 4 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. GLOBALSTAR TELECOMMUNICATIONS LIMITED (Registrant) Date: April 30, 1998 By: /s/ Eric J. Zahler ------------------- Eric J. Zahler Vice President GLOBALSTAR, L.P. ---------------- (Registrant) By: Loral/QUALCOMM Satellite Services, L.P., its General Partner By: Loral/QUALCOMM Partnership, L.P., its General Partner By: Loral General Partner, Inc. its General Partner Date: April 30, 1998 By: /s/ Eric J. Zahler ------------------- Eric J. Zahler Vice President -----END PRIVACY-ENHANCED MESSAGE-----