COVINGTON, La., Aug. 1, 2013 (GLOBE NEWSWIRE) -- Globalstar, Inc. (OTCBB:GSAT), a leading provider of mobile satellite voice and data services, announced today that the Company and its senior French lenders, have signed a Global Deed of Amendment and Restatement (the "Agreement") providing for the amendment and restatement of Globalstar's COFACE Facility Agreement and related loan documentation. The execution of the Agreement follows the May 2013 Equity Commitment, Restructuring Support and Consent Agreement between Globalstar and its lenders setting out the principal terms of the Agreement. Closing of the transactions contemplated by the Agreement, including the effectiveness of the Amended and Restated Facility Agreement, requires the satisfaction of conditions precedent, including but not limited to the payment of all related fees and expenses, the receipt of certain legal opinions and amendments to certain vendor agreements. The Company expects these conditions to be satisfied this month.
In May, the Company reported that the Amended and Restated Facility Agreement would provide for a significantly adjusted repayment schedule maturing in June 2020. The Agreement continues to postpone the first principal payment date from June 2013 to December 2014 with no principal payment greater than $5.0 million until June 2016. Through December 2019, the repayment schedule defers a total of $235.4 million. Further, the Amended and Restated Facility Agreement as finalized also extends the final maturity of the facility to December 31, 2022.
The Amended and Restated Facility Agreement also revises the financial covenants applicable to the Company to correspond to the Company's new business plan reflecting the delay in delivery of its second-generation satellites. Additionally, upon closing, all existing disclosed defaults under the facility will be waived.
Jay Monroe, Chairman and CEO of Globalstar, Inc. stated, "This Agreement satisfies another major milestone towards Globalstar's re-emergence as a leader in the MSS industry. We look forward to closing the Agreement in the coming weeks prior to placing our final second-generation satellite into service. We also look forward to gaining back market share and capitalizing on our future operational opportunities and would like to thank our French lending group and all advisors involved in making this transaction possible."
The Company will file a Current Report on Form 8-K with the Securities and Exchange Commission that will contain a further description of this transaction.
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.
CONTACT: For further investor information: LHA Jody Burfening/Carolyn Capaccio (212)-838-3777 firstname.lastname@example.org