Around US$38m of Globalstar’s convertible notes have automatically been turned into stock as the US MSS operator’s recovery pushes shares past their trigger price.
Its stock has been climbing steadily over the year and recently exceeded 200% of the…
Around US$38m of Globalstar’s convertible notes have automatically been turned into stock as the US MSS operator’s recovery pushes shares past their trigger price.
Its stock has been climbing steadily over the year and recently exceeded 200% of the US$1.14 conversion price over 30 consecutive trading days, prompting the issuance of around 34 million shares.
The debt was originally placed by Lazard back in June 2009, when Globalstar sold US$55m worth of the 8% senior unsecured notes, as part of commitments in its US$586m Coface-guaranteed senior secured credit facility.
Globalstar CEO and chairman Jay Monroe, who is also the operator’s controlling shareholder, bought US$11m of the securities through his Thermo vehicle. Around US$26m was snapped up by other existing investors and US$18m of the debt went to new investors.
The operator’s share price back then was around half what it is now, and in 2012 it was kicked off the NASDAQ stock exchange after failing to meet rules requiring a minimum US$1 price per share.
But a turnaround in Globalstar’s fortunes since then has boosted its shares, which closed at US$2.54 on 16 April.
It has returned to profit now that its second generation satellite system is up and running, its Coface-guaranteed debt facility has been restructured, and investors are being tempted by the potential value of its S-band spectrum licence in North America.
On Monday, Globalstar will ring the New York Stock Exchange’s opening bell as it begins trading its common shares there. The group had also applied to list on NASDAQ, although it said it intended to only pick one of them.
Monroe said: “Trading on the New York Stock Exchange represents yet another important milestone in Globalstar’s resurgence and has been made possible by our many important accomplishments over the past twelve months.
“Listing on the NYSE will enhance the Company’s trading liquidity as well as its visibility, all to the benefit of our loyal stockholders who have stuck with us over the past many years. Do not think for a moment that we are finished or that we plan to rest. Quite frankly, we are just getting started and look forward to continuing our resurgence.”
