COVINGTON, La.--(BUSINESS WIRE)--Dec. 19, 2018--
Globalstar, Inc. (“Globalstar”) (NYSE American: GSAT), a leading
provider of mobile satellite voice and data services to businesses,
governments, and individuals, today announced the pricing of a
registered underwritten public offering of 171,428,571 shares of its
voting common stock at a price to the public of $0.35 per share, before
underwriting discounts and commissions. The gross proceeds to Globalstar
from the offering, before deducting underwriting discounts and
commissions and other estimated offering expenses payable by Globalstar,
are expected to be approximately $60 million. The offering is expected
to close on December 21, 2018, subject to customary closing conditions.
Additionally, Globalstar granted the underwriter a 30-day option to
purchase up to an additional 25,714,285 shares of voting common stock at
the public offering price, less underwriting discounts and commissions.
All of the shares of voting common stock in the offering will be sold by
Globalstar.
As required by the credit agreement with its senior lenders (the
“Facility Agreement”), Globalstar intends to deposit 80% of the net
proceeds from the offering in a restricted account for the benefit of
the lenders under the Facility Agreement. The proceeds held in this
restricted account, together with a portion of cash on hand, will be
used to pay principal and interest due under the Facility Agreement in
December 2018. Globalstar expects that the remainder of the proceeds
from the offering will be used for general corporate purposes.
The offering will be made only to qualified and readily identifiable
Globalstar stockholders on a pro rata basis, pursuant to the terms of a
settlement agreement entered into in connection with a shareholder
action previously filed against Globalstar (the “Settlement Agreement”).
Pursuant to the Settlement Agreement, Globalstar’s controlling
shareholder, Thermo, and Mudrick Capital and Warlander have agreed to
purchase 53.0%, 5.6% and 2.8%, respectively, of the shares offered in
this offering on equal terms based on their respective ownership of
Globalstar’s common stock at the public offering price and have given a
backstop commitment to purchase any shares not otherwise purchased by
other investors in accordance with their respective ownership of
Globalstar’s common stock (86.3% for Thermo, 9.1% for Mudrick Capital
and 4.6% for Warlander).
Cantor Fitzgerald & Co. is acting as the sole book-running manager for
the offering.
The offering is being made pursuant to an effective registration
statement filed with the Securities and Exchange Commission (the “SEC”).
Before investing, please read the prospectus and the related prospectus
supplement for the offered shares in the registration statement and
other documents Globalstar has filed with the SEC for more complete
information about Globalstar and this offering. These documents are
available for free and may be obtained by visiting the SEC website at http://www.sec.gov.
Alternatively, copies of the prospectus and prospectus supplement are
available by contacting Cantor Fitzgerald & Co., Attention: Capital
Markets, 499 Park Ave., 6th Floor, New York, New York 10022, or by email
at [email protected].
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sales of these
securities in any state or jurisdiction in which such an offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities law of any such state or jurisdiction.
About Globalstar, Inc.
Globalstar is a leading provider of mobile satellite voice and data
services. Customers around the world in industries such as government,
emergency management, marine, logging, oil & gas and outdoor recreation
rely on Globalstar to conduct business smarter and faster, maintain
peace of mind and access emergency personnel. Globalstar data solutions
are ideal for various asset and personal tracking, data monitoring, M2M
and IoT applications. The Company's products include mobile and fixed
satellite telephones, the innovative Sat-Fi satellite hotspot, Simplex
and Duplex satellite data modems, tracking devices and flexible service
packages.
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 future increases in our revenue and profitability,
the completion of the proposed public offering of shares 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 SEC, including the prospectus and the prospectus
supplement, our Annual Report on Form 10-K, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181219005396/en/
Source: Globalstar, Inc.
Samantha DeCastro
[email protected]
