Loral Space & Communications, the satellite manufacturing and satellite-based services company, has extended the maturity of its credit facilities, including the $600 million Loral SpaceCom Facility and the $494 million Loral Satellite Facility. Loral also improved the amortization schedules, explained Tony Doumlele, senior director of investor relations. The extension frees Loral from principal payments of $535 million in 2002.
The move to extend the facilities is part of a wider strategy to reduce debt, he said. A subsidiary, Loral Cyber Star, completed a debt exchange offer, reducing debt by $225 million and annual cash payments by $39 million last month. Holders of 90.8% of Cyber Star's notes maturing in 2007 agreed to swap the 11.25% and 12.5% notes for $613 million of new 10% notes. The aim is to support the growth of the fixed satellite services business by launching several new satellites through 2002, he commented.
Bank of America and Deutsche Bank are co-lead arrangers and Credit Lyonnais is joint book running manager for the SpaceCom facility. For the Loral Satellite facility, B of A and Credit Lyonnais are the co-leads, Doumlele said, declining to comment on the spreads. According to Capital DATA Loanware, pricing was LIBOR plus 33/ 4% over LIBOR on the Satellite line. Scheduled interest payments are reduced for 2002 but there is a slightly higher interest payment overall while collateral supporting the lines has been increased, he added.