Loral Space & Communications Ltd is to sell $600m of 6% convertible preferred equivalent obligations due 2006, up from a previously-announced issue of $400m. The securities will be convertible into common shares at a price of $20.00 per share, a premium of 25.9% over last week’s closing price of 15.875. Net proceeds will be used for working capital, which may include paying a portion of the purchase price for the acquisition of AT&T Corp’s Skynet Satellite Services division, making additional investments in the Globalstar project to provide worldwide, low- earth orbit satellite-based digital telecommunications, and developing, investing in or acquiring additional satellite telecommunications businesses and opportunities. The underwriters for the issue were not identified.
