Globalstar Announces Proposed Public Offering of $125 Million in Shares of Voting Common Stock
October 04 2017 - 5:02PM
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 commenced an
offering of $125 million in shares of voting common stock in a
registered underwritten public offering. The offering will be
subject to market and other conditions. In addition, Globalstar
intends to grant the underwriters a 30-day option to purchase up to
$18.75 million in additional shares of voting common stock.
This offering is 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 is acting as the sole
book-running manager for the offering.
The offering is being 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, the completion of the proposed public offering of
shares 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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