Globalstar to Complete $62.0 Million Shareholder Bridge Financing
June 28 2019 - 10:35AM
Business Wire
Globalstar, Inc. (NYSE American: GSAT) announced today that its
Board of Directors has approved a $62.0 million non-convertible
bridge facility (“Bridge Facility”) to fund June 2019 principal and
interest payments to lenders of its senior credit facility
guaranteed by BPIFAE (“BPIFAE Facility”) and to maintain compliance
under the BPIFAE Facility. The new Bridge Facility, which is
subject to completion of definitive documentation, is expected to
close today and to be funded by multiple existing shareholders.
The Bridge Facility will be fully subordinated to the BPIFAE
Facility and will be senior to the existing Thermo Subordinated
Loan. The facility will bear payable-in-kind interest and is
expected to be replaced by a new second lien facility concurrent
with a broader refinancing in the near-term.
Jay Monroe, Executive Chairman of Globalstar, commented “The
Bridge Facility represents the first step of a two-part refinancing
of the company. We continue to work towards and are confident in
our ability to complete a broader refinancing in the near-term. We
look forward to announcing the comprehensive details of a
transaction as soon as possible. We believe the resulting pro forma
capital structure represents a significant improvement from the
existing structure and will provide an extended runway for the
company going forward. We expect this refinancing to allow the
company to deliver on the extensive potential before us with
respect to both the core satellite business and terrestrial
spectrum opportunities.”
About Globalstar
Globalstar is a leading provider of customizable Satellite IoT
Solutions for customers around the world in industries such as oil
and gas, transportation, emergency management, government, maritime
and outdoor recreation. A pioneer of mobile satellite voice and
data services, Globalstar allows businesses to streamline
operations by connecting people to their devices, supplying
personal safety and communication, and automating data to more
easily monitor and manage mobile assets via the Globalstar
Satellite Network. The Company's Commercial IoT product portfolio
includes the industry-acclaimed SmartOne asset tracking products,
Simplex satellite transmitters, and the SPOT® product line of
personal safety, asset and communication devices, all supported on
SPOT My Globalstar, a robust cloud-based back office solution.
Completing the satellite product suite are Duplex satellite data
modems, the innovative Sat-Fi2 satellite Wi-Fi hotspot, with all
product solutions offering a variety of data service plans. Learn
more at Globalstar.com
Notice Regarding Forward-Looking
Statements
This communication contains not only historical information, but
also forward-looking statements made pursuant to the safe-harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements represent Globalstar’s current
expectations or beliefs concerning future events, including but not
limited to the expected completion and timing of the proposed
bridge financing and refinancing, expected benefits and costs of
the proposed transactions, management plans and other information
relating to the proposed transaction. Without limiting the
foregoing, the words “will,” “is expected,” “believe,” “should,”
“would” and similar expressions are intended to identify
forward-looking statements. You should read any such
forward-looking statements carefully, as they involve a number of
risks, uncertainties and assumptions that may cause actual results
to differ significantly from those projected or contemplated in any
such forward-looking statement. Those risks, uncertainties and
assumptions include (i) the risk that the proposed bridge financing
or refinancing may not be completed in a timely manner or at all,
which may adversely affect Globalstar’s business and financial
position and the price of the common stock of Globalstar, (ii) the
failure to satisfy any of the conditions to the consummation of the
proposed transactions, (iii) the occurrence of any event, change or
other circumstance or condition that could give rise to the
termination of the bridge financing agreement, (iv) the effect of
the announcement or pendency of the proposed transaction on
Globalstar’s business relationships, operating results and business
generally, (v) risks that the proposed transaction disrupts current
plans and operations and the potential difficulties in employee
retention as a result of the proposed transaction, (vi) risks
related to diverting management’s attention from Globalstar’s
ongoing business operations, (vii) unexpected costs, charges or
expenses resulting from the proposed transactions, and (viii) other
risks described in Globalstar’s filings with the SEC, such as its
Quarterly Reports on Form 10Q and Annual Reports on Form 10-K.
Forward-looking statements speak only as of the date of this
communication or the date of any document incorporated by reference
in this document. Except as required by applicable law or
regulation, Globalstar does not assume any obligation to update any
such forward-looking statements whether as the result of new
developments or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20190628005344/en/
Marcy O'Leary, Globalstar, Inc. marcy.oleary@globalstar.com
(985) 335-1609
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