Globalstar has closed a $400 million debt and equity financing

April 24, 2006

2 Min Read

MILPITAS, Calif. -- Globalstar, Inc., a world leader in providing mobile satellite voice and data services to business, announced today that it has closed a $400 million debt and equity financing. The financing consists of $200 million of debt in the form of a five-year term loan and a four-year revolving credit facility, both underwritten by Wachovia Securities. The $200 million in equity capital is being invested by affiliates of the Thermo Companies. Minority shareholders in Globalstar will be provided an opportunity to participate in the equity financing.

Globalstar intends to use the proceeds of the financing, as well as cash from its ongoing business, to fund the design and deployment of the company's second-generation satellite constellation, upgrades to its ground segment and the launch of eight spare satellites for its current constellation in early 2007. The second generation satellite constellation will continue to provide Globalstar customers with industry leading voice quality as well as increased data speeds to both handheld and fixed subscriber equipment. Globalstar is already capable of providing ancillary terrestrial component service or ATC, which the FCC authorized it to provide in January. The second-generation satellite constellation will fully integrate ATC and ensure the company's long-term capability to provide ATC and other integrated wireless multimedia satellite solutions.

"This financing solidifies the funding for the future strategic growth of Globalstar. We can now implement our plans for the next generation satellite constellation and other initiatives that will better serve our customers and grow our wireless telecommunications businesses through the next decade and beyond" said Jay Monroe, Chairman and CEO of Globalstar, Inc. Mr. Monroe added, "the current environment for this type of financing is extraordinarily strong. This financing environment, combined with the company's exceptional financial performance, has enabled us to fully fund our business plan at this time."

Globalstar Inc. (Nasdaq: GSAT)

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