SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
July 2, 1996
Date of Report (Date of earliest event reported)
AMERICAN MOBILE SATELLITE CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 0-23044 93-0976127
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
10802 Parkridge Boulevard, Reston, Virginia 22091
(Address of principal executive offices) (Zip Code)
(703) 758-6000
(Registrant's telephone number, including area code)
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Item 5. Other Events
On July 2, 1996, American Mobile Satellite Corporation (the "Company")
released to the press the statement attached hereto as Exhibit 99.5 and
incorporated herein by this reference, regarding the finalization by the Company
of a $225 million credit facility with Morgan Guaranty Trust Company of New York
and The Toronto Dominion Bank. The availability of amounts committed pursuant to
this credit facility is subject to the Company's satisfaction of certain
financial performance tests, as to which there can be no assurance.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AMERICAN MOBILE SATELLITE CORPORATION
(Registrant)
Date: July 2, 1996 /s/ Patrick C. FitzPatrick
--------------------------
Patrick C. FitzPatrick
Vice President and Chief Financial Officer
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EXHIBIT INDEX
Exhibit
Number Exhibit
99.5 -- American Mobile Satellite Corporation Press Release
No. 96-#16 dated March 6, 1996 (filed herewith).
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American Mobile Satellite Corporation
10802 Parkridge Blvd.
Reston VA
22091
703 758 6000
FAX 758 6111
News Release
Reference: 96-#16
FOR IMMEDIATE RELEASE
AMERICAN MOBILE SATELLITE CORPORATION
ANNOUNCES $225 MILLION REFINANCING
Reston, VA, July 2, 1996--American Mobile Satellite Corporation (AMSC) (NASDAQ:
SKYC), which began commercial offering of its satellite telecommunications
services in January, announced today the completion of a $225 million bank
financing that the company expects will meet its capital requirements until its
operations become fully self-sufficient on a cash flow basis. The company had
previously announced its intent to negotiate such a credit arrangement.
The five-year term loan and revolving credit facility is fully
underwritten by Morgan Guaranty Trust Company of New York and The Toronto
Dominion Bank and guaranteed in substantial part by Hughes Electronics
Corporation, Singapore Telecommunications Ltd. and Baron Capital Partners, L.P.,
three of the company's largest investors. As was previously announced, these
shareholders have received five-year warrants to purchase 5 million shares of
AMSC's common stock at $24 per share as compensation for issuing the guarantees.
"This refinancing stabilizes the capitalization requirements of our
business and will likely enable us to meet all financing needs until our
operations are fully sustaining on a cash flow basis," said Patrick C.
FitzPatrick, the company's chief financial officer. "It is also a reaffirmation
by AMSC's major shareholders of our business potential. We welcome and
appreciate their continuing support."
-more-
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The refinancing replaces a $70 million interim financing package
consisting of an extension of $40 million in existing indebtedness and two loans
totaling $30 million.
During the first quarter of 1996, American Mobile Satellite Corporation
inaugurated voice revenue service operations via its AMSC-1 satellite. Launched
in 1995, AMSC-1 makes possible a full range of mobile communications including
telephone, data and position reporting services to land mobile, maritime,
aeronautical, transportation and fixed site customers throughout the continental
United States, Alaska, Hawaii, Puerto Rico, the Virgin Islands and hundreds of
miles of U.S. coastal waters.
Press Contacts: Orly Konig Lopez Investor Contacts: Renate Brown Neely
American Mobile Satellite Corporation American Mobile Satellite Corporation
703/716-6522 703/716-6558
Martin Gitlin Jordan Darrow
The Financial Relations Board The Financial Relations Board
212/661-8030 212/661-8030
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Factors that could cause forward-looking statements in this news release to
differ materially from actual results are discussed in the company's S-1
registration statement; Form 10K for the year ended December 31, 1995; Form 10Q
for the quarter ended March 31, 1996 and other periodic filings with the
Securities and Exchange Commission. Copies of the filings are available upon
request from the company's investor relations department.
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