NEW YORK, April 30, 2020 /PRNewswire/ -- Loral Space
& Communications Inc. (NASDAQ: LORL) today announced that its
Board of Directors has declared a special dividend of $5.50 per share for an aggregate dividend of
approximately $170.5 million.
The dividend is payable on May 28,
2020 to holders of record of Loral voting and non-voting
common stock as of the close of business on May 14, 2020. As of
April 29, 2020, there were outstanding 21,427,078 shares
of Loral voting common stock, 9,505,673 shares of Loral non-voting
common stock and 75,262 restricted stock units.
Commenting on declaration of this special dividend, Michael B. Targoff, Vice Chairman of Loral's
Board of Directors, explained that, "in an effort to maximize
shareholder value, we have for some time been exploring, and are
now in advanced discussions with our Canadian co‑owner in Telesat,
Public Sector Pension Investment Board ("PSP"), regarding the
combination of Loral and Telesat into one public company." Mr. Targoff further explained that,
"given the advanced state of the discussions regarding the
combination transaction, it is now appropriate to pay to our
shareholders a significant portion of the $243 million cash
distribution that we previously received from Telesat." "It
is our intention," Mr. Targoff continued, "to request that the
Board declare an additional distribution to our shareholders in
coordination with signing definitive agreements for the combination
transaction."
Regarding today's dividend declaration, Dr. Mark Rachesky, Chairman of the Board of Loral,
said: "I am pleased that the discussions with PSP regarding the
strategic transaction that we have been pursuing have reached an
advanced stage, and I am particularly gratified that, in addition
to the more than $42 per share in
dividends previously paid by Loral to its shareholders, we are now
able to share additional significant proceeds with our shareholders
due to the continued success of our investment in Telesat."
Notwithstanding the advanced state of the discussions regarding
the potential combination transaction, there can be no assurance as
to whether or when Loral will be able to conclude the ongoing
negotiations, that Loral will enter into any agreement that
provides for a strategic transaction involving Telesat or Loral's
interest therein, that any strategic transaction will occur, or
that any particular economic, tax, structural or other objectives
or benefits with respect to any strategic transaction will be
achieved. Moreover, there can be no assurance as to the
amount and timing of any future distribution, and such distribution
may be impacted by the outcome of our discussions regarding, and
the structure of, the strategic combination transaction that we are
pursuing.
About Loral Space & Communications Inc.
Loral
Space & Communications is a satellite communications company.
Loral owns 62.7 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" 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 Commission.
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; and (4)
other risks, including risks relating to and resulting from the
Covid-19 pandemic. 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.
Contact:
John
Capogrossi
212-338-5355
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SOURCE Loral Space & Communications