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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
Date of Report (Date of earliest event reported):
September 22, 2000
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GLOBALSTAR TELECOMMUNICATIONS LIMITED
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(Exact name of registrant as specified in its charter)
Islands of Bermuda 0-25456 13-3795510
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number
Cedar House, 41 Cedar Avenue, Hamilton, Bermuda HM 12
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(441) 295-2244
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GLOBALSTAR, L.P.
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(Exact name of registrant as specified in its charter)
Delaware 333-25461 13-3759824
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number
3200 Zanker Road, San Jose, California 95134
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(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code:
(408)933-4000
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Item 5. Other Events.
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Pursuant to its purchase agreement with Bear, Stearns International Limited
("Bear Stearns"), dated as of September 18, 2000, Globalstar Telecommunications
Limited ("GTL") sold in multiple tranches over the period of September 22, 2000
through October 13, 2000, a total of 4,050,000 shares of its common stock. The
proceeds of $32.8 million were used by GTL to purchase ordinary partnership
interests in Globalstar, L.P. ("Globalstar"). Globalstar, in turn, will use
these proceeds for general corporate purposes, including capital expenditures,
operations (including marketing and distribution of phones and services) and
interest expense.
In accordance with management's plan to use available cash to support
Globalstar's sale and marketing efforts, GTL also announced today that quarterly
dividends on GTL's 8% Series A Convertible Preferred Stock due 2011 (the "Series
A Preferred Stock") and 9% Series B Convertible Preferred Stock due 2011 (the
"Series B Preferred Stock") will be paid in common stock, rather than in cash,
until further notice from the company. The terms of the Series A Preferred Stock
and the Series B Preferred Stock provide that shares of common stock issued as
dividend payments will be valued at 95% of the average of the high and low sale
prices of GTL common stock as reported on the Nasdaq National Market for the ten
trading days ending on the fifth business day prior to the record date for such
dividend. In connection with these dividends, Globalstar will issue partnership
interests to GTL corresponding to the number of shares of common stock issued by
GTL to the holders of the Series A and Series B Preferred Stock.
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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.
GLOBALSTAR TELECOMMUNICATIONS
LIMITED
By: /s/ Richard J. Townsend
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Name: Richard J. Townsend
Title: Vice President and
Chief Financial Officer
GLOBALSTAR, L.P.
By: Loral/Qualcomm Satellite
Services, L.P., its managing
general partner
By: Loral/Qualcomm Partnership,
L.P., its general partner
By: Loral General Partner, Inc.,
its general partner
By: /s/ Avi Katz
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Name: Avi Katz
Title: Vice President and
Secretary
Date: October 18, 2000
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