Loral Closes Sale of Space Systems/Loral to MDA
NEW YORK, NY, Nov 02, 2012 (MARKETWIRE via COMTEX) --
Loral Space & Communications Inc. (NASDAQ: LORL) today announced
that it has completed the sale of its wholly-owned subsidiary, Space
Systems/Loral (SS/L), to MacDonald, Dettwiler and Associates Ltd.
(TSX: MDA). At closing, Loral received $968 million in cash plus a
bank guaranteed three-year promissory note in the principal amount of
$101 million for the purchase of certain real estate used in
connection with SS/L's business.
"We are exceptionally pleased that we have closed the SS/L sale
transaction at a value that recognizes SS/L's leadership and premier
position in the global satellite manufacturing business," said
Michael B. Targoff, Chief Executive Officer of Loral Space &
Communications. "Congratulations to MDA. We are confident that the
combination of SS/L with MDA will benefit SS/L's employees, customers
and suppliers and the entire satellite communications industry."
"We are proud of our management team's success in establishing SS/L
as a leading global commercial satellite manufacturer and in bringing
the transaction with MDA to closure," said Dr. Mark Rachesky,
Chairman of the Board of Directors of Loral. "The transaction
reflects the Board's continued commitment to delivering significant
value to all Loral shareholders, and the Board will evaluate the
opportunity to return capital to shareholders through a cash
distribution of the net cash proceeds from this sale transaction."
About Loral Space & Communications Inc.
Loral Space & Communications
is a satellite communications company. Loral owns 64 percent of
Telesat Canada, a global operator of telecommunications and direct
broadcast satellites used to distribute video entertainment
programming, broadband data, and provide access to Internet services
and other value-added communications services. For more information,
visit Loral's web site at www.loral.com. LORL-F
This document contains forward-looking statements within the meaning
of the U.S. Private Securities Litigation Reform Act of 1995. When
used in this press release, the words "believes," "expects," "plans,"
"may," "will," "would," "could," "should," "anticipates,"
"estimates," "project," "intend" or "outlook" or other variations of
these words or other similar expressions are intended to identify
forward-looking statements and information. 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, and press
releases or oral statements made with the approval of an authorized
executive officer of the company. Actual results may differ
materially from anticipated results as a result of certain risks and
uncertainties which are described as "Risk Factors" and in the
"Commitments and Contingencies" note to our financial statements in
the current Form 10-K and in Loral's quarterly reports on Form 10-Q.
The reader is specifically referred to these documents, as well as
the Company's other filings with the Securities and Exchange
Risks and uncertainties include but are not limited to (1) risks
associated with financial factors, including swings in the global
financial markets, increases in interest rates and access to capital;
(2) risks associated with satellite services, including dependence on
large customers, launch delays and failures, in-orbit failures and
competition; (3) regulatory risks, such as the effect of industry and
government regulations that affect Telesat; (4) litigation risks,
including patent litigation with ViaSat and (5) other risks,
including a possible initial public offering at Telesat that could
adversely affect the market for our common stock. The foregoing list
of important factors is not exclusive. Furthermore, Loral operates in
an industry sector where securities values may be volatile and may be
influenced by economic and other factors beyond Loral's control.
SOURCE: Loral Space & Communications
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