NEW YORK (Thomson Financial) - Globalstar Inc. said late Tuesday it plans to
offer $135 million of convertible senior notes due 2028.
Globalstar said it intends to grant the underwriters a 30-day option to
purchase an additional $15 million aggregate principal amount of the notes,
solely to cover overallotments, if any.
Merrill Lynch, Pierce, Fenner & Smith Inc. and Deutsche Bank Securities Inc.
will act as joint book-running managers for the offering.
Globalstar also said it plans to enter into a share lending agreement with
an affiliate of Merrill Lynch, under which Globalstar will lend shares of its
common stock to the share borrower.
Globalstar expects to use the net proceeds from the notes offering to
acquire government securities in an amount equal to the first six semiannual
payments of interest on the notes, and to pay a portion of the costs of
procuring and launching the company's second-generation satellite and related
ground facilities.
Globalstar is a Milpitas, Calif.-based provider of mobile satellite voice
and data services. The stock closed the regular session at $7.59.
Wanfeng Zhou
wz/gm
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