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[Satellite TODAY 05-21-13] Globalstar, a provider of mobile satellite voice and data services, has announced it has successfully completed and reached agreements to complete multi-part financings in connection with the successful exchange of its 5.75 percent Convertible Senior Unsecured Notes into new 8.00 percent Senior Unsecured Convertible Notes. In addition to the exchange, Globalstar also entered into an agreement with Thermo and its French bank group providing $25 million of initial equity from Thermo to complete the exchange.
According to Globalstar, once these agreements are implemented, they will help eliminate financial uncertainties, materially reduce debt amortization requirements through 2019, and provide the capital required, which, when combined with anticipated internally generated cash flow and the $30 million Terrapin equity line announced in December 2012, are expected to facilitate a fully funded long-term business plan.
“All of the pieces of the puzzle are finally in place – our second-generation constellation is fully launched, Duplex revenue growth is starting to accelerate, customers are being rewarded for their loyalty as service levels have significantly improved, and we are launching five new products during 2013 that demonstrate our commitment to the commercial and consumer MSS markets,” Jay Monroe, chairman and CEO of Globalstar, said in a statement.
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