Globalstar Announces $200 Million Non-Convertible Financing to Satisfy Remaining Capital Needs
March 29 2023 - 08:21AM
Business Wire
Globalstar, Inc. (NYSE American: GSAT), a leading telecom
infrastructure provider, today announced that it has entered into a
purchase agreement with an affiliate of Värde Partners and others
providing for the sale of $200 million in aggregate principal
amount of 13% Senior Notes due 2029. This transaction is expected
to close on or around March 31, 2023. The notes are non-convertible
and therefore do not result in equity dilution. Goldman Sachs &
Co. LLC acted as exclusive placement agent to Globalstar in
connection with the financing.
The proceeds from the notes will be used primarily to repay all
remaining amounts due under Globalstar’s 2019 facility agreement of
approximately $148 million. The remaining proceeds will be used for
fees and general corporate purposes.
Rebecca Clary, Globalstar’s Chief Financial Officer, said “This
financing is a critical step in a series of achievements over the
last several months to secure our balance sheet. Despite a tough
capital markets environment, we were able to successfully complete
this financing. We welcome the new investors and thank our entire
team and advisors for delivering what we believe is an excellent
result for our company and its shareholders.”
Dave Kagan, Globalstar’s Chief Executive Officer, added “We can
now shift our focus to executing our business plan across our four
pillars of value creation, which include transitioning to more
wholesale revenue generated from satellite capacity, our rapidly
expanding IoT services and the continuing revenue and profitability
from our legacy business and retail SPOT customers. The fourth
pillar, our largest opportunity, is spectrum monetization on a
global basis anchored by Band 53 in 11 countries and counting with
an expanding ecosystem that facilitates deployments. We are now
well positioned for a bright future with increasing opportunities
and a balance sheet to help us realize those opportunities.”
Francisco Milone, Partner at Värde Partners, added "We are
pleased to partner with Globalstar as they position themselves for
growth in the coming years. Värde continues to focus on providing
capital solutions to high-quality companies with capital
needs."
About Globalstar, Inc.
Globalstar empowers its customers to connect, transmit and
communicate in smarter ways – easily, quickly, securely, and
affordably – offering reliable satellite and terrestrial
connectivity services as an international telecom infrastructure
provider. The company’s LEO satellite constellation assures a
secure data transmission for connecting and protecting assets,
transmitting key operational data, and saving lives – from any
location – for consumers, businesses, and government agencies
across the globe. Globalstar’s terrestrial spectrum, Band 53,
offers carriers, cable companies, and system integrators a
versatile, fully licensed channel with a growing ecosystem to
improve their customers’ wireless connectivity. In addition to SPOT
GPS messengers, Globalstar offers next-generation IoT hardware and
software products for efficiently tracking and monitoring assets,
processing smart data at the edge, and managing analytics with
cloud-based telematics solutions to drive safety, productivity, and
profitability.
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, our ability to identify and realize
opportunities to monetize our Band 53 spectrum, future increases in
our revenue and profitability, the impact on our business due to
unexpected events such as the COVID-19 coronavirus, our ability to
meet our obligations under, and profit from, the Service
Agreements, 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.
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Investor Contact Information: Email:
investorrelations@globalstar.com
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