[Satellite Today 06-09-09] Globalstar Inc. signed an agreement with a syndicate of banks for a $586 million credit facility to be supported by credit insurance from Coface, the export credit agency acting on behalf of the French government, Globalstar announced June 5.
    The deal, unveiled in March, completes $738 million in financing that Globalstar will use to fund its next-generation satellite fleet being manufactured by Thales Alenia Space. The funds will cover manufacture, delivery and launch of the Globalstar 2.0 second-generation network and ground facilities as well certain long-lead items connected with accelerated delivery of additional second-generation spare satellites. The financing will also facilitate the introduction of satellite interface chipsets being designed by Hughes Network Systems.
    The bank syndicate includes: BNP Paribas, Natixis, Societe Generale, Calyon, and Credit Industriel et Commercial. Coface will provide long-term credit insurance to facilitate the credit facility. Scheduled semi-annual principal repayments will begin the earlier of eight months after the launch of the second generation constellation or Dec. 15, 2011.
    "The completion of this financing will solidify Globalstar’s long-term leadership position in the mobile satellite services industry by providing the space, ground and terminal resources needed to deliver an industry leading, high quality mobile satellite service well into the future," Jay Monroe, Chairman and CEO of Globalstar, said in a statement. "In a few months we expect to be in the enviable position of taking possession of the first of our Globalstar 2.0 next-generation satellites. With our next-generation space and ground segment, we plan to be first to market with a host of new advanced mobile satellite services years ahead of the competition.”