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Globalstar to Complete $62.0 Million Shareholder Bridge Financing

June 28, 2019

Globalstar, Inc. announced today that its Board of Directors has approved a $62.0 million non-convertible bridge facility (“Bridge Facility”) to fund June 2019 principal and interest payments to lenders of its senior credit facility guaranteed by BPIFAE (“BPIFAE Facility”) and to maintain compliance under the BPIFAE Facility. The new Bridge Facility, which is subject to completion of definitive documentation, is expected to close today and to be funded by multiple existing shareholders.

The Bridge Facility will be fully subordinated to the BPIFAE Facility and will be senior to the existing Thermo Subordinated Loan. The facility will bear payable-in-kind interest and is expected to be replaced by a new second lien facility concurrent with a broader refinancing in the near-term.

Jay Monroe, Executive Chairman of Globalstar, commented “The Bridge Facility represents the first step of a two-part refinancing of the company. We continue to work towards and are confident in our ability to complete a broader refinancing in the near-term. We look forward to announcing the comprehensive details of a transaction as soon as possible. We believe the resulting pro forma capital structure represents a significant improvement from the existing structure and will provide an extended runway for the company going forward. We expect this refinancing to allow the company to deliver on the extensive potential before us with respect to both the core satellite business and terrestrial spectrum opportunities.”



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