Globalstar Announces Closing of Amended and Restated COFACE Facility Agreement
All Conditions Precedent Satisfied, Assuring Significant Future Financial
COVINGTON, La., Aug. 22, 2013 (GLOBE NEWSWIRE) -- Globalstar, Inc.
(OTCBB:GSAT), a leading provider of mobile satellite voice and data services,
announced today that the Company has met all of the conditions precedent
necessary for the effectiveness of the Amended and Restated COFACE Facility
Agreement (the "Agreement").
The Agreement waives all existing defaults under the existing facility,
postpones the first principal payment date to December 2014, defers a total of
$235.4 million in principal payments through December 2019, and extends the
final maturity date to December 2022.The Agreement also revises the financial
covenants to correspond to the Company's new business plan reflecting the
delay in delivery of its second-generation satellites.
Jay Monroe, Chairman and CEO of Globalstar, Inc. stated, "We previously
informed you that Globalstar expected to meet all of the conditions precedent
to close this transaction during the month of August, and I am pleased to
announce today that we have done just that.As part of the transactions
completed over the past few months, Thermo has invested, or committed to
invest, an additional $85 million in equity to Globalstar, demonstrating its
continued commitment to Globalstar and belief in the Company's long-term
growth opportunities both in the provision of mobile satellite services around
the world and the potential of our unique spectrum assets.We intend to move
forward aggressively to maximize these opportunities for the benefit of our
customers and our shareholders. Once again, we would like to thank our French
lending group and all advisors involved in making this transaction possible."
About Globalstar, Inc.
Globalstar is a leading provider of mobile satellite voice and data services.
Globalstar offers these services to commercial customers and recreational
consumers in more than 120 countries around the world. The Company's products
include mobile and fixed satellite telephones, simplex and duplex satellite
data modems, the SPOT family of mobile satellite consumer products including
the SPOT Satellite GPS Messenger and flexible airtime 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 consumers. Globalstar data solutions are ideal for various asset
and personal tracking, data monitoring and SCADA applications. All SPOT
products described in Globalstar or SPOT LLC press releases 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.
For more information regarding Globalstar, please visit Globalstar's web site
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 satisfy the closing conditions under the Agreement, place the last
of its second-generation satellites into service and resume a leadership
position in its industry 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 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: For further investor information:
Jody Burfening/Carolyn Capaccio
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