Globalstar, Inc. (NYSE American: GSAT), a provider of mobile satellite voice and data services to businesses, governments, and individuals, has announced that it has commenced an offer of USD 60 million in shares of voting common stock in a registered underwritten public offering, the company said.
The offering will be subject to market and other conditions. In addition, Globalstar intends to grant the underwriter a 30-day option to purchase up to USD 9 million in additional shares of voting common stock.
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.
Cantor Fitzgerald & Co. is acting as the sole book-running manager for the offering.
Globalstar is a provider of mobile satellite voice and data services. 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.