Globalstar Orders Six More Satellites

Globalstar recently placed an order with Thales Alenia Space for six more satellites. These six satellites will be in addition to the 25 satellites already ordered from the 2006 second generation contract. According to the contract these satellites will cost EUR 55 million and are planned to be delivered by 2013. When the contract was signed in 2006 there was a fast track delivery clause, because Globalstar has purchased EUR 12 million in long lead items that facilitated the fast manufacturing of these six satellites. Globalstar prepaid over EUR 53 million as part of its 2009 Coface financing. Combined with the EUR 12 million long lead items, Thales has received EUR 65 million for these satellites. Additional payments will not be made to Thales until they start manufacturing the satellites.