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