Globalstar Announces Milestone Amendment to COFACE Facility Agreement
COVINGTON, La., Mar 7, 2012 (GlobeNewswire via COMTEX) --
Globalstar, Inc. (Nasdaq:GSAT), today announced that it has entered into an amendment to its COFACE facility agreement, which significantly extends the initial principal repayment date beyond 2012 and makes further adjustments to the facility's financial and operating covenants. According to the amendment, the first repayment date will now be as late as June 2013 instead of June 2012. The precise date is dependent on the date of the Company's fourth launch of second-generation satellites and will be the earlier of June 2013 or eight months post-launch.
The amendment includes a significant reduction of the 2011 and 2012 Adjusted Consolidated EBITDA covenants and a change to the required date for the 24th second-generation satellite to be placed into service. Additional adjustments were made to align certain levels and dates with Globalstar's launch schedule.
"We are pleased to announce these important changes to the financing agreement as it provides Globalstar with the added flexibility to complete the four launches of our new satellite constellation, restore our network coverage and begin revenue recovery prior to making principal facility payments," said Jay Monroe, Chairman and CEO of Globalstar, Inc. "I would like to acknowledge and thank both COFACE and members of the French lending group for the consideration they have shown permitting the completion of this milestone amendment."
In June 2009, Globalstar entered into a $586.3 million senior secured credit facility agreement. Ninety-five percent of the Company's obligations under the facility agreement are guaranteed by COFACE, the French export credit agency. The facility bears interest at a floating 6-month LIBOR rate, plus a margin of 2.07% through December 2012, increasing to 2.25% through December 2017 and 2.40% thereafter.
About Globalstar, Inc.
Globalstar is a leading provider of mobile satellite voice and data services. Globalstar offers these services to commercial and recreational users in more than 120 countries around the world. The Company's products include mobile and fixed satellite telephones, simplex and duplex satellite data modems and flexible 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 users. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring and SCADA applications.
For more information regarding Globalstar, please visit Globalstar's web site at www.globalstar.com
The Globalstar, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8183
Safe Harbor Language for Globalstar Releases
This press release may contain certain statements considered to be "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 ability to develop and expand our business, our anticipated capital spending (including for future satellite procurements and launches), our ability to manage costs, our ability to exploit and respond to technological innovation, the effects of laws and regulations (including tax laws and regulations) and legal and regulatory changes, the opportunities for strategic business combinations and the effects of consolidation in our industry on us and our competitors, our anticipated future revenues, our anticipated financial resources, our expectations about the future operational performance of our satellites (including their projected operational lives), the expected strength of and growth prospects for our existing customers and the markets that we serve, commercial acceptance of our new Simplex products, including our SPOT satellite GPS messenger (TM) products, problems relating to the ground-based facilities operated by us or by independent gateway operators, worldwide economic, geopolitical and business conditions and risks associated with doing business on a global basis 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 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 Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Globalstar, Inc.
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