By Sheri Kasprzak
New York, Oct. 17 - Loral Space & Communications Inc. completed a $300 million private placement of convertible preferred stock with MHR Fund Management LLC.
MHR bought $41 million in series A and $259 million in series B convertible preferred stock. The preferreds pay annual dividends at 7.5%.
Each preferred is convertible into 10 common shares at $30.15 each.
Loral may force conversion of the preferreds after five and a half years if its stock trades above 125% of the conversion price for a specified period.
Proceeds will be used for internal and external growth opportunities in the satellite communications industry.
Loral, based in New York, is a satellite communications company.
| Issuer: | Loral Space & Communications Inc.
|
| Issue: | Series A and B convertible preferred stock
|
| Amount: | $300 million ($41 million series A; $259 million series B)
|
| Dividends: | 7.5%
|
| Conversion price: | $30.15
|
| Conversion ratio: | Each preferred into 10 common shares
|
| Call: | May force conversion after 5.5 years if stock trades above 125% of conversion price
|
| Warrants: | No
|
| Investor: | MHR Fund Management LLC
|
| Settlement date: | Oct. 17
|
| Stock symbol: | Nasdaq: LORL
|
| Stock price: | $27.09 at close Oct. 17
|
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