Globalstar… A 2G Six Pack (Satellites)

[SatNews] The Company has placed the order for more 2G spacecraft for their constellation…

Globalstar, Inc. (Nasdaq:GSAT) has placed an order with Thales Alenia Space for an additional six satellites. This is in addition to the 25 satellites already ordered under the 2006 second-generation constellation contract. According to the terms of the contract these satellites will cost approximately 55 million euros and should be delivered by mid-2013. The fast track delivery, agreed upon when the contract was signed in 2006 is because Globalstar has previously purchased 12 million euros in long lead items that facilitate the prompt manufacture of these six spacecraft. Additionally, the incremental purchase amount is particularly price competitive due to the fact that Globalstar has already prepaid more than 53 million euros as part of its 2009 COFACE financing. Combined with the 12 million euros long lead items, Thales has already received approximately 65 million euros for these satellites. Further payments will not be made until Thales Alenia Space initiates the manufacturing process.

“Notwithstanding the previously announced arbitration proceedings, we look forward to receipt of these satellites for our second-generation constellation,” said Jay Monroe, Executive Chairman and CEO of Globalstar, Inc. “This is a complicated project and we value Thales’s ability to deliver on time and on budget.”