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COVINGTON, La., Dec. 31, 2012 (GLOBE NEWSWIRE) -- Globalstar, Inc. (GSAT) today announced that it 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.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities. The securities offered and sold in the private placement have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration, under the Securities Act and applicable state securities laws.
About Globalstar, Inc.
Globalstar is a leading provider of mobile satellite voice and data services. Globalstar offers these services to commercial and recreational users in more than 120 countries around the world. The Company's products include mobile and fixed satellite telephones, simplex and duplex satellite data modems and flexible service packages. Many land based and maritime industries benefit from Globalstar with increased productivity from remote areas beyond cellular and landline service. Global customer segments include: oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational users. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring and SCADA applications. Note that all SPOT products described in this or any Globalstar press release are the products of Spot LLC, which is not affiliated in any manner with Spot Image of Toulouse, France or Spot Image Corporation of Chantilly, Virginia. SPOT Connect is a trademark of Spot LLC.