Globalstar has completed the sale of its previously announced public offering of 73,365,231 shares
OREANDA-NEWS. October 12, 2017. Globalstar, Inc. (“Globalstar”) (NYSE American:GSAT), a leading provider of mobile satellite voice and data services to businesses, governments and consumers, today announced that it has completed the sale of its previously announced public offering of 73,365,231 shares of voting common stock. The aggregate net proceeds to Globalstar from the offering are approximately $114.8 million, after deducting underwriting discounts and commissions and other expenses.
This offering was 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 acted as the sole book-running manager for the offering. Cantor Fitzgerald & Co. and Chardan Capital Markets acted as joint lead managers for the offering.
The offering was made pursuant to an effective registration 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.
Globalstar is a leading provider of mobile satellite voice and data services. Customers around the world in industries such as government, emergency management, marine, logging, oil & gas and outdoor recreation rely on Globalstar to conduct business smarter and faster, maintain peace of mind and access emergency personnel. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring, SCADA and IoT applications. The Company's products include mobile and fixed satellite telephones, the innovative Sat-Fi satellite hotspot, Simplex and Duplex satellite data modems, tracking devices and flexible service packages.