Globalstar Announces Decision to Proceed With the French BPIFAE Facility Amendment and New Second Lien Facility
- Amendment maintains current cost of senior debt and provides runway through 2022 senior debt maturity
$195 million new second lien credit facility to be funded by a strategic partner, Thermo and other investors to pay down existing debt-
Existing Thermo subordinated loan to be voluntarily converted at
$0.69 per share -
Total net senior debt at closing of less than
$150 million
In June, the Company reached an agreement in principle on the terms of the pending amendment with the BPIFAE lenders and the requisite credit committee approvals have since been received. Additionally, the material terms of the second lien facility have been agreed. Closing of these transactions is subject to final definitive documentation and customary closing requirements and conditions. The amendment provides for (i) prepayment of the next three scheduled principal payments primarily using proceeds from the new second lien term loan facility, (ii) revisions to the remaining repayment schedule to reduce the amount of scheduled payments of principal required prior to maturity, and (iii) a reset of financial covenant levels together with an extension of the availability of the cure mechanism under the BPIFAE Facility.
The amendment is intended to improve the Company’s capital structure by fully funding the business plan through the final maturity date of the BPIFAE Facility Agreement in
To support the transaction, Thermo has agreed to a voluntary conversion of the existing
The terms and economics of the second lien term loan facility are expected to be in line with the
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Note that all SPOT products described in this press release are the products of
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 our expectations with respect to an amended BPIFAE Facility and a new second lien facility, including the terms and timing thereof, the effect of those transactions on our future business and cash needs, 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 are believed to be accurate 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 we undertake no obligation to update any such statements. Additional information on factors that could influence our financial results is included in our filings with the
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Source:
Marcy Fluitt, 985-335-1525
[email protected]