Globalstar Announces Pricing of Public Offering of Voting Common Stock
October 05 2017 - 9:56PM
Globalstar, Inc. (“Globalstar”) (NYSE American:GSAT), a leading
provider of mobile satellite voice and data services to businesses,
governments and consumers, today announced the pricing of a
registered underwritten public offering of 73,365,231 shares of its
voting common stock at a price to the public of $1.65 per share,
before underwriting discounts and commissions. The gross proceeds
to Globalstar from the offering, before deducting underwriting
discounts and commissions and other estimated offering expenses
payable by Globalstar, are expected to be approximately $121.1
million. The offering is expected to close on October 11,
2017, subject to customary closing conditions. Additionally,
Globalstar granted the underwriters a 30-day option to purchase up
to an additional 11,004,784 shares of voting common stock at the
public offering price, less underwriting discounts and
commissions. All of the shares of voting common stock in the
offering will be sold by Globalstar.
This offering is made to satisfy a requirement
relating to the June 2017 credit agreement amendment. As required
by the credit agreement with its senior lenders (the “Facility
Agreement”), Globalstar intends to deposit 80% of the net proceeds
from the offering in a restricted account for the benefit of the
lenders under the Facility Agreement. The proceeds held in the
restricted account are expected to be drawn to pay principal and
interest due under the Facility Agreement in December 2017 and June
2018. Globalstar expects that the remainder of the proceeds will be
used for general corporate purposes.
Morgan Stanley is acting as sole book-running
manager for this offering. Cantor Fitzgerald & Co. and Chardan
Capital Markets are acting as joint lead managers for the
offering.
The offering is being made pursuant to an
effective registration statement filed with the Securities and
Exchange Commission (the “SEC”). Before investing, please read the
prospectus and the related prospectus supplement for the offered
shares in the registration statement and other documents Globalstar
has filed with the SEC for more complete information about
Globalstar and this offering. These documents are available for
free and may be obtained by visiting the SEC website at
http://www.sec.gov. Alternatively, copies of the prospectus and
prospectus supplement are available by contacting Morgan Stanley
& Co. LLC, Attention: Prospectus Department, 180 Varick Street,
2nd Floor, New York, New York 10014.
This press release shall not constitute an offer
to sell or a solicitation of an offer to buy, nor shall there be
any sales of these securities in any state or jurisdiction in which
such an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities law of any such
state or jurisdiction.
About Globalstar, Inc.
Globalstar is a leading provider of mobile satellite voice and data
services. Customers around the world in industries such as
government, emergency management, marine, logging, oil & gas
and outdoor recreation rely on Globalstar to conduct business
smarter and faster, maintain peace of mind and access emergency
personnel. Globalstar data solutions are ideal for various asset
and personal tracking, data monitoring, SCADA and IoT applications.
The Company's products include mobile and fixed satellite
telephones, the innovative Sat-Fi satellite hotspot, Simplex and
Duplex satellite data modems, tracking devices and flexible service
packages.
Note that all SPOT products described in this
press release are the products of SPOT LLC, a subsidiary of
Globalstar, which is not affiliated in any manner with Spot Image
of Toulouse, France or Spot Image Corporation of Chantilly,
Virginia.
Investor contact information: Kyle Pickens
kyle.pickens@globalstar.com
Safe Harbor Language for Globalstar Releases
This press release contains certain statements that are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are based on current expectations and assumptions that
are subject to risks and uncertainties which may cause actual
results to differ materially from the forward-looking statements.
Forward-looking statements, such as the statements regarding our
expectations with respect to actions by the FCC, future increases
in our revenue and profitability, the completion of the proposed
public offering of shares and other statements contained in this
release regarding matters that are not historical facts, involve
predictions. Any forward-looking statements made in this press
release are believed to be accurate as of the date made and are not
guarantees of future performance. Actual results or developments
may differ materially from the expectations expressed or implied in
the forward-looking statements, and we undertake no obligation to
update any such statements. Additional information on factors that
could influence our financial results is included in our filings
with the SEC, including the prospectus and the prospectus
supplement, our Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K.
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