Globalstar Announces Completion of Public Offering of Voting Common Stock
October 11 2017 - 4:30PM
Globalstar, Inc. (“Globalstar”) (NYSE American:GSAT), a leading
provider of mobile satellite voice and data services to businesses,
governments and consumers, today announced that it has completed
the sale of its previously announced public offering of 73,365,231
shares of voting common stock. The aggregate net proceeds to
Globalstar from the offering are approximately $114.8 million,
after deducting underwriting discounts and commissions and other
expenses.
This offering was made to satisfy a requirement relating to the
June 2017 credit agreement amendment. As required by the credit
agreement with its senior lenders (the “Facility Agreement”),
Globalstar intends to deposit 80% of the net proceeds from the
offering in a restricted account for the benefit of the lenders
under the Facility Agreement. The proceeds held in the restricted
account are expected to be drawn to pay principal and interest due
under the Facility Agreement in December 2017 and June 2018.
Globalstar expects that the remainder of the proceeds will be used
for general corporate purposes.
Morgan Stanley acted as the sole book-running
manager for the offering. Cantor Fitzgerald & Co. and Chardan
Capital Markets acted as joint lead managers for the offering.
The offering was made pursuant to an effective
registration statement filed with the Securities and Exchange
Commission (the “SEC”). Before investing, please read the
prospectus and the related prospectus supplement for the offered
shares in the registration statement and other documents Globalstar
has filed with the SEC for more complete information about
Globalstar and this offering. These documents are available for
free and may be obtained by visiting the SEC website at
http://www.sec.gov. Alternatively, copies of the prospectus and
prospectus supplement are available by contacting Morgan Stanley
& Co. LLC, Attention: Prospectus Department, 180 Varick Street,
2nd Floor, New York, New York 10014.
This press release shall not constitute an offer
to sell or a solicitation of an offer to buy, nor shall there be
any sales of these securities in any state or jurisdiction in which
such an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities law of any such
state or jurisdiction.
About Globalstar, Inc. Globalstar is a leading
provider of mobile satellite voice and data services. Customers
around the world in industries such as government, emergency
management, marine, logging, oil & gas and outdoor recreation
rely on Globalstar to conduct business smarter and faster, maintain
peace of mind and access emergency personnel. Globalstar data
solutions are ideal for various asset and personal tracking, data
monitoring, SCADA and IoT applications. The Company's products
include mobile and fixed satellite telephones, the innovative
Sat-Fi satellite hotspot, Simplex and Duplex satellite data modems,
tracking devices and flexible service packages.
Note that all SPOT products described in this press release are
the products of SPOT LLC, a subsidiary of Globalstar, which is not
affiliated in any manner with Spot Image of Toulouse, France or
Spot Image Corporation of Chantilly, Virginia.
Investor contact information: Kyle Pickens
kyle.pickens@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
actions by the FCC, future increases in our revenue and
profitability, 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 SEC, including the prospectus and the prospectus
supplement, our Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K.
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