Globalstar, Inc. (OTCBB:GSAT), provider of mobile satellite voice and data services, announced 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.
