Communications Satellite Corp. Deal - Lehman Brothers Collection
Communications Satellite Corp.
|Company Deal||Communications Satellite Corporation: 10,000,000 shares of common stock|
|Transaction Type||Common Stock|
|Deal Description||Communications Satellite Corporation planned to apply a portion of the net proceeds from this transaction to the payment of bank loans of the corporation. The balance of the proceeds was used to pay the costs and expenses expected to be incurred by the corporation in carrying out its program over the years following the deal for the development and establishment of a commercial communications satellite system, and for related purposes. It was contemplated that funds not at the time required for such purposes would be invested in obligations of the U. S. government or in other interest-bearing obligations or deposits. It was believed that the net proceeds from the sale of common stock, together with interest income and possible revenues from the operations of the experimental operational satellite proposed to have been launched in 1965, would have provided an amount sufficient to pay substantially all of the program costs that were required to be paid by the corporation. It was expected that telecommunications entities in other countries may have become joint owners with the corporation of the space segment of the communications satellite system and may have provided part of the capital necessary to pay the costs of establishing the space segment.|
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