Globalstar Has Changed its Agreement with COFACE
Globalstar has changed its agreement with COFACE, a French export credit agency, which will extend the initial principal repayment date on its debt beyond 2012.
Globalstar entered into a $586.3 million senior secured credit facility agreement with COFACE in June 2009. COFACE is guaranteeing ninety-five per cent of the company's obligations under the facility agreement.
The facility bears interest at a floating 6-month LIBOR rate, plus a margin of 2.07 per cent through December 2012, increasing to 2.25 per cent through December 2017 and 2.40 per cent thereafter.
The first repayment date will now be as late as June 2013, instead of June 2012. The exact date depends on when Globalstar will launch their fourth set of second-generation satellites, and will be the early part of June 2013 or eight months post-launch.
"We are pleased to announce these important changes to the financing agreement as it provides Globalstar with the added flexibility to complete the four launches of our new satellite constellation, restore our network coverage and begin revenue recovery prior to making principal facility payments," said Jay Monroe, chairman and CEO of Globalstar, Inc.
"I would like to acknowledge and thank both COFACE and members of the French lending group for the consideration they have shown permitting the completion of this milestone amendment."