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by Staff Writers
Covington, LA (SPX) Jan 04, 2013
Globalstar, Inc. (GSAT) has obtained a committed issuer managed equity financing facility under which it may from time to time sell up to $30.0 million of its voting common stock to Terrapin Opportunity, L.P.
"This facility provides us with funds to help finance our capital obligations over the next two years," said Jay Monroe, CEO of Globalstar, Inc.
"The structure of this facility gives us flexibility and pricing control that we can use to manage the potential dilution of additional equity.
On the basis of the past year's revenue and profit growth and our execution on our long-term strategic plan, this financing demonstrates investors' increased confidence in Globalstar as we continue with final preparations for our fourth launch of six new satellites in February."
Under the terms of the transaction, Globalstar can draw up to $30.0 million over the 24-month period following the effectiveness of a registration statement it has agreed to file with the SEC to register the resale of the stock by Terrapin and remains able to enter into and consummate additional equity and debt financing transactions.
Globalstar will determine, at its sole discretion, the timing, price and amount of the draws which will be based on the Company's share price over time.
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