NEW YORK (Thomson Financial) - Globalstar Inc. Thursday priced an offering
of 5.75% convertible senior notes due 2028 at an initial conversation price of
$6.02 a share.
The company listed Merrill Lynch, Pierce, Fenner & Smith and Deutsche Bank
as joint book-running managers and granted them an over-allotment option of $15
million in the $135 million offering.
Globalstar said it would use proceeds from the offering to acquire enough
government securities to make the first six semiannual interest payments on the
notes, and to launch satellite and related ground facilities.
Shares of Globalstar, a Milpitas, Calif.-based provider of satellite voice
and data services, closed Wednesday at $4.90, but fell 6.1% to $4.60 in
premarket trading Thursday.
Ryan Vlastelica
rv/vj
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