Thermo Capital Partners has finalized its agreement to acquire satellite phone company Globalstar LP. As a result of the agreement, a new Globalstar company, controlled by Thermo, has been established, and Thermo will be providing funding for the new company’s operations.

Under the acquisition agreement, Globalstar’s business assets will be transferred to the new company, which will operate under the Globalstar brand name. The transfer will be completed upon receipt of U.S. regulatory approval, which is expected to occur in the first quarter of 2004. In the meantime, Globalstar’s regulated assets will remain with Globalstar LP and will be operated by the new company pursuant to a management agreement.

The agreement completed late last week will give Thermo an 81.25 percent ownership of the new company that will take control of Globalstar’s assets and operations, in exchange for a cash investment of up to $43 million. The remaining 18.75 percent of the equity interests in the new company will be retained by Globalstar for future distribution to its creditors under its bankruptcy plan. Additionally, Globalstar’s creditors will have the right to purchase additional equity interests in the new company for an aggregate ownership interest of up to 36.37 percent.