Globalstar, Inc. Announces Pricing of Public Offering of Voting Common Stock
December 19 2018 - 8:30AM
Business Wire
Globalstar, Inc. (“Globalstar”) (NYSE American: GSAT), a leading
provider of mobile satellite voice and data services to businesses,
governments, and individuals, today announced the pricing of a
registered underwritten public offering of 171,428,571 shares of
its voting common stock at a price to the public of $0.35 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
$60 million. The offering is expected to close on December 21,
2018, subject to customary closing conditions. Additionally,
Globalstar granted the underwriter a 30-day option to purchase up
to an additional 25,714,285 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.
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
this restricted account, together with a portion of cash on hand,
will be used to pay principal and interest due under the Facility
Agreement in December 2018. Globalstar expects that the remainder
of the proceeds from the offering will be used for general
corporate purposes.
The offering will be made only to qualified and readily
identifiable Globalstar stockholders on a pro rata basis, pursuant
to the terms of a settlement agreement entered into in connection
with a shareholder action previously filed against Globalstar (the
“Settlement Agreement”). Pursuant to the Settlement Agreement,
Globalstar’s controlling shareholder, Thermo, and Mudrick Capital
and Warlander have agreed to purchase 53.0%, 5.6% and 2.8%,
respectively, of the shares offered in this offering on equal terms
based on their respective ownership of Globalstar’s common stock at
the public offering price and have given a backstop commitment to
purchase any shares not otherwise purchased by other investors in
accordance with their respective ownership of Globalstar’s common
stock (86.3% for Thermo, 9.1% for Mudrick Capital and 4.6% for
Warlander).
Cantor Fitzgerald & Co. is acting as the sole book-running
manager 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 Cantor Fitzgerald & Co., Attention:
Capital Markets, 499 Park Ave., 6th Floor, New York, New York
10022, or by email at prospectus@cantor.com.
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, M2M 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.
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 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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Samantha DeCastrosamantha.decastro@globalstar.com
Globalstar (AMEX:GSAT)
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