Globalstar Executes Amended COFACE Agreement

Globalstar announced that its senior French lenders have signed a global deed of amendment. Image credit: Globalstar

[Satellite TODAY 08-02-13] Globalstar announced that its senior French lenders have signed a global deed of amendment and restatement providing for the amendment and restatement of Globalstar’s COFACE facility agreement and related loan documentation. The execution of the agreement follows the May 2013 equity commitment, restructuring support and consent agreement between Globalstar and its lenders setting out the principal terms of the agreement.

Closing of the transactions contemplated by the agreement, including the effectiveness of the amended and restated facility agreement, requires the satisfaction of conditions precedent, including but not limited to the payment of all related fees and expenses, the receipt of certain legal opinions and amendments to certain vendor agreements. The company expects these conditions to be satisfied this month.

In May, the company reported that the amended and restated facility agreement would provide for a significantly adjusted repayment schedule maturing in June 2020. The agreement continues to postpone the first principal payment date from June 2013 to December 2014 with no principal payment greater than $5 million until June 2016. Through December 2019, the repayment schedule defers a total of $235.4 million.