Globalstar has secured an amendment to the Coface-backed US$586.3m senior secured credit facility that it secured in June 2009.
The satellite operator has sought to delay the date of the first principal repayment by up to six months to the earlier of…
Globalstar has secured an amendment to the Coface-backed US$586.3m senior secured credit facility that it secured in June 2009.
The satellite operator has sought to delay the date of the first principal repayment by up to six months to the earlier of eight months after the launch of its final second-generation satellite or June 15, 2012. This six month extension is also applicable to the final maturity date of the loan as well as the effectiveness of the minimum debt service coverage ratio.
In addition, Globalstar sought to delay the last date for required in-orbit acceptance of 24 second-generation satellites by nine months to September 1, 2012.
The mandated lead arrangers on the facility are BNP Paribas, Société Générale, Natixis, Crédit Agricole CIB and Crédit Industriel et Commercial (CIC).
Meanwhile, the satellite operator has outlined the potential sale of 13 million new and existing shares that were part of Globalstar’s US$18m acquisition of satellite asset tracking and messaging products manufacturer Axonn at the end of 2009.
Under the terms of that transaction, Globalstar paid an initial US$1.5m in cash and US$5.5m in newly issued shares. An additional payment of up to US$11m for earn-out payments based on sales of existing and new products was then payable over the next five years. This earn-out payment has been principally made in stock with 7.06 million shares having already been issued to the Axonn selling shareholders and an additional 5.94 million that may be issued pursuant to Axonn’s performance.
The timing of the filing is connected to the conclusion of a one-year lock-up period that the selling shareholders were subject to following the acquisition.
