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Globalstar Announces Pricing of Public Offering of Voting Common StockCOVINGTON, La., Oct. 05, 2017 (GLOBE NEWSWIRE) -- Globalstar, Inc. (“Globalstar”) (NYSE American:GSAT), a leading provider of mobile satellite voice and data services to businesses, governments and consumers, today announced the pricing of a registered underwritten public offering of 73,365,231 shares of its voting common stock at a price to the public of $1.65 per share, before underwriting discounts and commissions. The gross proceeds to Globalstar from the offering, before deducting underwriting discounts and commissions and other estimated offering expenses payable by Globalstar, are expected to be approximately $121.1 million. The offering is expected to close on October 11, 2017, subject to customary closing conditions. Additionally, Globalstar granted the underwriters a 30-day option to purchase up to an additional 11,004,784 shares of voting common stock at the public offering price, less underwriting discounts and commissions. All of the shares of voting common stock in the offering will be sold by Globalstar. 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 sole book-running manager for this offering. Cantor Fitzgerald & Co. and Chardan Capital Markets are acting as joint lead managers for the offering. The offering is being made pursuant to an effective regitration 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. 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: Safe Harbor Language for Globalstar Releases |