Globalstar Announces Completion of Second Lien Warrant Exercise
Globalstar, Inc. (NYSE American: GSAT) today announced that all
remaining warrants issued to its second lien lenders in November
2019 have been exercised. These warrants were exercised for shares
of common stock resulting in total proceeds to Globalstar of $47.3
million. This equity issuance satisfies the Company’s requirement
in its loan agreements to raise a minimum of $45 million of equity
by March 30, 2021.
As required by the Company’s debt agreements, these proceeds
will be used to pay principal outstanding under its first lien loan
agreement. Following this payment, the remaining principal
outstanding under this agreement (net of restricted cash) will be
reduced to approximately $84 million, of which $58 million is due
on the final maturity date of December 31, 2022.
Dave Kagan, Chief Executive Officer, commented, "We are pleased
to have this milestone behind us and welcome our second lien
lenders as equity holders. While driving forward several strategic
initiatives, we continue to meaningfully deliver our balance sheet.
We are on sound footing relative to our remaining debt repayment
obligations with less than $6 million due in scheduled principal
payments over the next twelve months. Our solid liquidity position
as well as the recent positive developments relative to both our
satellite and terrestrial spectrum assets should offer
opportunities to continue to improve the balance sheet, including
the opportunity to pursue a refinancing of the second lien debt to
reduce borrowing costs. This is a very exciting time to be part of
The Company will file a prospectus supplement concurrent with
this release to facilitate resale of the shares issued to the
warrant holders, other than Thermo. This prospectus supplement does
not relate to any new financing, nor does it indicate an intention
of any holders to sell their shares.
About Globalstar, Inc.
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 solutions connect people to their devices
and allow businesses to streamline operations providing safety and
communication and enabling mobile assets to be monitored remotely
via the Globalstar Satellite Network. The Company's Commercial IoT
product portfolio includes industry-acclaimed SmartOne asset
tracking products, Commercial IoT satellite transmitters and the
SPOT® product line for personal safety, messaging and emergency
response, all supported on SPOT My Globalstar, a robust cloud-based
enhanced mapping solution. Learn more at Globalstar.com.
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.
For more information, visit www.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 the pursuit of terrestrial spectrum
authorities globally, future increases in our revenue and
profitability, 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 Securities and Exchange Commission, including our Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K.
version on businesswire.com: https://www.businesswire.com/news/home/20210330005805/en/
Investor Contact Information: Denise Davila Email:
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