COVINGTON, La., Aug. 22, 2013 (GLOBE NEWSWIRE) -- Globalstar, Inc. (OTCBB:GSAT), a leading provider of mobile satellite voice and data services, announced today that the Company has met all of the conditions precedent necessary for the effectiveness of the Amended and Restated COFACE Facility Agreement (the "Agreement").
The Agreement waives all existing defaults under the existing facility, postpones the first principal payment date to December 2014, defers a total of $235.4 million in principal payments through December 2019, and extends the final maturity date to December 2022. The Agreement also revises the financial covenants to correspond to the Company's new business plan reflecting the delay in delivery of its second-generation satellites.
Jay Monroe, Chairman and CEO of Globalstar, Inc. stated, "We previously informed you that Globalstar expected to meet all of the conditions precedent to close this transaction during the month of August, and I am pleased to announce today that we have done just that. As part of the transactions completed over the past few months, Thermo has invested, or committed to invest, an additional $85 million in equity to Globalstar, demonstrating its continued commitment to Globalstar and belief in the Company's long-term growth opportunities both in the provision of mobile satellite services around the world and the potential of our unique spectrum assets. We intend to move forward aggressively to maximize these opportunities for the benefit of our customers and our shareholders. Once again, we would like to thank our French lending group and all advisors involved in making this transaction possible."
About Globalstar, Inc.
Globalstar is a leading provider of mobile satellite voice and data services. Globalstar offers these services to commercial customers and recreational consumers in more than 120 countries around the world. The Company's products include mobile and fixed satellite telephones, simplex and duplex satellite data modems, the SPOT family of mobile satellite consumer products including the SPOT Satellite GPS Messenger and flexible airtime service packages. Many land based and maritime industries benefit from Globalstar with increased productivity from remote areas beyond cellular and landline service. Global customer segments include: oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational consumers. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring and SCADA applications. All SPOT products described in Globalstar or SPOT LLC press releases are the products of Spot LLC, which is not affiliated in any manner with Spot Image of Toulouse, France or Spot Image Corporation of Chantilly, Virginia.
For more information regarding Globalstar, please visit Globalstar's web site at www.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 the Company's ability to satisfy the closing conditions under the Agreement, place the last of its second-generation satellites into service and resume a leadership position in its industry 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 speak 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 Globalstar undertakes no obligation to update any such statements. Additional information on factors that could influence the Company's financial results is included in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.