In the terms of the transaction, Globalstar issued $38 million in 5 percent interest senior debt. Investors will receive warrants to purchase an aggregate of 15.2 million shares of common stock. Globalstar’s financing plan also gives investors the option to invest up to an incremental $12 million during an approximate three-month period on the same principal terms.

    Globalstar Executive Chairman Jay Monroe said the proceeds of this financing would be used to meet capital expenditure needs, including the procurement and deployment of its second-generation constellation.

    “As we continue with final preparations for next month’s launch of six new second-generation satellites, the investment associated with this capital raise once again demonstrates the continued confidence our investors have in Globalstar and our long-term future,” Monroe said in a statement.