COVINGTON, La., Aug. 22, 2013 (GLOBE NEWSWIRE) — Globalstar, Inc. (GSAT), a leading provider of mobile satellite voice and data services, announced today that the Company has met all of the conditions precedent necessary for the effectiveness of the Amended and Restated COFACE Facility Agreement (the “Agreement”).
The Agreement waives all existing defaults under the existing facility, postpones the first principal payment date to December 2014, defers a total of $235.4 million in principal payments through December 2019, and extends the final maturity date to December 2022. The Agreement also revises the financial covenants to correspond to the Company’s new business plan reflecting the delay in delivery of its second-generation satellites.
Jay Monroe, Chairman and CEO of Globalstar, Inc. stated, “We previously informed you that Globalstar expected to meet all of the conditions precedent to close this transaction during the month of August, and I am pleased to announce today that we have done just that. As part of the transactions completed over the past few months, Thermo has invested, or committed to invest, an additional $85 million in equity to Globalstar, demonstrating its continued commitment to Globalstar and belief in the Company’s long-term growth opportunities both in the provision of mobile satellite services around the world and the potential of our unique spectrum assets. We intend to move forward aggressively to maximize these opportunities for the benefit of our customers and our shareholders. Once again, we would like to thank our French lending group and all advisors involved in making this transaction possible.”
If the financial data wasn’t bad enough in Iridium’s Quarterly Report issued today. The note that Iridium management now signals that they EXPECT to be out of compliance with certain financial covenants of their lenders requirements in the later part of 2014 can not have helped the cause. In the 10-Q, it states:
“We expect to need modifications to the Credit Facility for some financial covenants with measurement dates beyond the next twelve months, and there can be no assurance that the lenders will agree to such modifications, or they may require us to raise additional capital as a condition to such modifications, which may not be available on favorable terms, or at all. In addition, our ongoing ability to make draws under the Credit Facility will depend upon our satisfaction of those and other borrowing conditions from time to time, some of which will be outside of our control”
COVINGTON, La., Aug. 1, 2013 (GLOBE NEWSWIRE) — Globalstar, Inc. (GSAT), a leading provider of mobile satellite voice and data services, announced today that the Company and its senior French lenders, have signed a Global Deed of Amendment and Restatement (the “Agreement”) providing for the amendment and restatement of Globalstar’s COFACE Facility Agreement and related loan documentation. The execution of the Agreement follows the May 2013 Equity Commitment, Restructuring Support and Consent Agreement between Globalstar and its lenders setting out the principal terms of the Agreement. Closing of the transactions contemplated by the Agreement, including the effectiveness of the Amended and Restated Facility Agreement, requires the satisfaction of conditions precedent, including but not limited to the payment of all related fees and expenses, the receipt of certain legal opinions and amendments to certain vendor agreements. The Company expects these conditions to be satisfied this month.
COVINGTON, La., July 29, 2013 (GLOBE NEWSWIRE) — SPOT LLC, a wholly owned subsidiary of Globalstar, Inc. and leader in satellite messaging and emergency notification technologies, today announced SPOT Gen3, the next generation of the SPOT Satellite GPS Messenger(TM). SPOT Gen3 offers enhanced functionality with more tracking features, improved battery performance and more power options including rechargeable and USB direct line power. SPOT is part of an award-winning product line that provides an affordable and vital line of communication with friends, family and emergency assistance on any adventure, from canoeing to hiking to snowmobiling.
Company also announces $85 million financing and financial backstop from Thermo
Receives necessary approval from Lenders and French government to implement Exchange and agreement on principal terms to amend COFACE Facility Agreement in near future.
COVINGTON, La., May 20, 2013 (GLOBE NEWSWIRE) — Globalstar, Inc. (GSAT), a leading provider of mobile satellite voice and data services, announced today it has successfully completed and reached agreements to complete multi-part financings in connection with the successful exchange (the “Exchange”) of its 5.75% Convertible Senior Unsecured Notes (“5.75% Notes”) into new 8.00% Senior Unsecured Convertible Notes (“8.00% 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. The agreement also establishes the principal terms of an amendment to the 2009 COFACE Facility Agreement that, among other adjustments, upon closing would materially improve the debt amortization and related financial covenant schedules and provides for an incremental $60 million of funding and funding backstop from Thermo, up to $20 million of which could be injected even prior to the anticipated closing on the facility amendment.