Globalstar, Inc., a leading provider of mobile satellite voice and data services, announced that the Company has met all of the conditions precedent necessary for the effectiveness of the Amended and Restated COFACE Facility Agreement.
The Agreement waives all existing defaults under the existing facility, postpones the first principal payment date to December 2014, defers a total of $235.4 million in principal payments through December 2019, and extends the final maturity date to December 2022. The Agreement also revises the financial covenants to correspond to the Company's new business plan reflecting the delay in delivery of its second-generation satellites.
Jay Monroe, Chairman and CEO of Globalstar, Inc. stated, "We previously informed you that Globalstar expected to meet all of the conditions precedent to close this transaction during the month of August, and I am pleased to announce today that we have done just that. As part of the transactions completed over the past few months, Thermo has invested, or committed to invest, an additional $85 million in equity to Globalstar, demonstrating its continued commitment to Globalstar and belief in the Company's long-term growth opportunities both in the provision of mobile satellite services around the world and the potential of our unique spectrum assets. We intend to move forward aggressively to maximize these opportunities for the benefit of our customers and our shareholders. Once again, we would like to thank our French lending group and all advisors involved in making this transaction possible."
Globalstar is a leading provider of mobile satellite voice and data services.