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Globalstar Announces Completion of Second Lien Warrant Exercise
COVINGTON, La.--(BUSINESS WIRE)-- Globalstar, Inc. (NYSE American: GSAT) today announced that all remaining warrants issued to its second lien lenders in
About this update from Globalstar, Inc.
[{"type":"text","content":" COVINGTON, La.--(BUSINESS WIRE)--\nGlobalstar, Inc. (NYSE American: GSAT) today announced that all remaining warrants issued to its second lien lenders in November 2019 have been exercised. These warrants were exercised for shares of common stock resulting in total proceeds to Globalstar of $47.3 million. This equity issuance satisfies the Company’s requirement in its loan agreements to raise a minimum of $45 million of equity by March 30, 2021.\n\nAs required by the Company’s debt agreements, these proceeds will be used to pay principal outstanding under its first lien loan agreement. Following this payment, the remaining principal outstanding under this agreement (net of restricted cash) will be reduced to approximately $84 million, of which $58 million is due on the final maturity date of December 31, 2022.\n\nDave Kagan, Chief Executive Officer, commented, \"We are pleased to have this milestone behind us and welcome our second lien lenders as equity holders. While driving forward several strategic initiatives, we continue to meaningfully deliver our balance sheet. We are on sound footing relative to our remaining debt repayment obligations with less than $6 million due in scheduled principal payments over the next twelve months. Our solid liquidity position as well as the recent positive developments relative to both our satellite and terrestrial spectrum assets should offer opportunities to continue to improve the balance sheet, including the opportunity to pursue a refinancing of the second lien debt to reduce borrowing costs. This is a very exciting time to be part of Globalstar.”\n\nThe Company will file a prospectus supplement concurrent with this release to facilitate resale of the shares issued to the warrant holders, other than Thermo. This prospectus supplement does not relate to any new financing, nor does it indicate an intention of any holders to sell their shares.\n\nAbout Globalstar, Inc.\n\nGlobalstar is a leading provider of customizable Satellite IoT Solutions for customers around the world in industries such as oil and gas, transportation, emergency management, government, maritime and outdoor recreation. A pioneer of mobile satellite voice and data services, Globalstar solutions connect people to their devices and allow businesses to streamline operations providing safety and communication and enabling m...