Globalstar Secures $30 Million Capital Raise With Terrapin Opportunity, L.P.
COVINGTON, La., Dec. 31, 2012 (GLOBE NEWSWIRE) -- Globalstar, Inc. (GSAT)
today announced that it has obtained a committed issuer managed equity
financing facility under which it may from time to time sell up to $30.0
million of its voting common stock to Terrapin Opportunity, L.P.
"This facility provides us with funds to help finance our capital obligations
over the next two years," said Jay Monroe, CEO of Globalstar, Inc. "The
structure of this facility gives us flexibility and pricing control that we
can use to manage the potential dilution of additional equity. On the basis of
the past year's revenue and profit growth and our execution on our long-term
strategic plan, this financing demonstrates investors' increased confidence in
Globalstar as we continue with final preparations for our fourth launch of six
new satellites in February."
Under the terms of the transaction, Globalstar can draw up to $30.0 million
over the 24-month period following the effectiveness of a registration
statement it has agreed to file with the SEC to register the resale of the
stock by Terrapin and remains able to enter into and consummate additional
equity and debt financing transactions. Globalstar will determine, at its sole
discretion, the timing, price and amount of the draws which will be based on
the Company's share price over time.
This press release shall not constitute an offer to sell or the solicitation
of an offer to buy securities. The securities offered and sold in the private
placement have not been registered under the Securities Act of 1933, as
amended, or any state securities laws, and may not be offered or sold in the
United States absent registration, or an applicable exemption from
registration, under the Securities Act and applicable state securities laws.
About Globalstar, Inc.
Globalstar is a leading provider of mobile satellite voice and data services.
Globalstar offers these services to commercial and recreational users in more
than 120 countries around the world. The Company's products include mobile and
fixed satellite telephones, simplex and duplex satellite data modems and
flexible service packages. Many land based and maritime industries benefit
from Globalstar with increased productivity from remote areas beyond cellular
and landline service. Global customer segments include: oil and gas,
government, mining, forestry, commercial fishing, utilities, military,
transportation, heavy construction, emergency preparedness, and business
continuity as well as individual recreational users. Globalstar data solutions
are ideal for various asset and personal tracking, data monitoring and SCADA
applications. Note that all SPOT products described in this or any Globalstar
press release are the products of Spot LLC, which is not affiliated in any
manner with Spot Image of Toulouse, France or Spot Image Corporation of
Chantilly, Virginia. SPOT Connect is a trademark of Spot LLC.
For more information regarding Globalstar, please visit Globalstar's web site
The Globalstar, Inc. logo is available at
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 the Company's
ability to develop and expand its business, its anticipated capital spending
(including for future satellite procurements and launches), its ability to
manage costs, its ability to exploit and respond to technological innovation,
the effects of laws and regulations (including tax laws and regulations) and
legal and regulatory changes, the opportunities for strategic business
combinations and the effects of consolidation in its industry on the Company
and its competitors, its anticipated future revenues, its anticipated
financial resources, its expectations about the future operational performance
of its satellites (including their projected operational lives), the expected
strength of and growth prospects for the Company's existing customers and the
markets that it serve, commercial acceptance of its new Simplex products,
including its SPOT satellite GPS messenger ^TM products, problems relating to
the ground-based facilities operated by the Company or its independent gateway
operators, worldwide economic, geopolitical and business conditions and risks
associated with doing business on a global basis and other statements
contained in this release regarding matters that are not historical facts,
Any forward-looking statements made in this press release speak 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 Globalstar undertakes no obligation to
update any such statements. Additional information on factors that could
influence the Company's financial results is included in its filings with the
Securities and Exchange Commission, including its Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
CONTACT: Media contact information:
Investor contact information:
Jody Burfening/Carolyn Capaccio
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