Globalstar Completes $738 Million in Financing

[Satellite Today 07-02-09] Globalstar has completed its financing of $738 million that will fund the company’s next-generation satellite system, Globalstar announced July 1.
    The total financing combines a $586 million credit facility secured in March by Coface, France's export credit agency; a registered direct offering of convertible debt and warrants for $55 million; and a $60 million deposit by Thermo Funding, the majority shareholder of Globalstar.
    The company said the $738 million financing fully funds the manufacture, delivery and launch of Globalstar next-generation network and ground facilities by Thales Alenia Space as well as accelerated delivery of additional second-generation spare satellites. The financing also will facilitate the introduction of Globalstar's next-generation satellite interface chipsets being designed by Hughes Network Systems.
    “With this funding, we have the resources needed to deploy a new constellation of satellites designed to last beyond 2025 and to build the supporting ground infrastructure that will position us to be first to market with a host of advanced IP-based mobile satellite services years ahead of our primary competition,” Jay Monroe, chairman and CEO of Globalstar, said in a statement.