Globalstar, Inc. (NYSE American: GSAT) has announced it has signed a merger agreement with Thermo Acquisitions, Inc. pursuant to which the following assets will be combined with Globalstar: metro fiber provider FiberLight, LLC (FiberLight), 15.5 million shares of common stock of CenturyLink, Inc. (NYSE: CTL) (CenturyLink), USD 100 million of cash and minority investments in complementary businesses and assets of USD 25 million in exchange for Globalstar common stock valued at approximately USD 1.65 billion, subject to adjustments, the company said.
Thermo Acquisition, Inc. is controlled by Jay Monroe, Executive Chairman of the board of directors and Chief Executive Officer of Globalstar. At closing the parent company will be renamed Thermo companies, Inc., and its stock will continue to trade publicly. The transaction has been unanimously recommended by the Special Committee of the board of directors of Globalstar, consisting entirely of independent directors, and unanimously approved by the full board of directors. The merger is expected to close in the third quarter of 2018.
The combined company will hold a unique set of assets including Globalstar´s world-wide satellite business with 2017 Adjusted EBITDA of approximately USD 32 million and projected pro forma net debt outstanding of approximately USD 380 million at closing; a spectrum management company facilitating transactions related to Globalstar´s US and international terrestrial spectrum; FiberLight, a metro fiber provider serving 40 of the top 50 US bandwidth providers across approximately 14,000 route miles with 2017 Adjusted EBITDA of approximately USD 67 million based on unaudited results and approximately USD 200 million of net debt at closing; and Thermo Investments, an investment management company with initial investments in CenturyLink stock valued today at approximately USD 275 million, which is expected to provide annual dividends of approximately USD 33.5 million, minority investments in Pivotal Commware and Orion Labs, plus USD 100 million of investable cash.
Thermo was founded in 1984 to develop power plants and natural gas assets. The cash flow generated from these early energy assets was deployed across several industries with uncorrelated financial drivers including real estate, aircraft leasing, industrials, financial services and telecom. For more information, visit www.thermoco.com.
Globalstar is a 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. For more information, visit www.globalstar.com.
FiberLight provides mission critical high bandwidth networks customized for clients´ specific requirements. FiberLight owns and operates deep fiber networks in over 30 metropolitan areas in the US with a concentration in Texas, the Southeast, the Washington DC corridor, Mid-Atlantic markets and Bay Area. The growing network currently consists of approximately 14,000 route miles and 26,000 backbone access points. Customers include domestic and international telecom companies, wireless, wireline, cable and cloud providers as well as key players across enterprise, government and education representing 40 of the top 50 bandwidth providers in the United States. For more information, visit www.fiberlight.com.