Globalstar gets $150 million amended and restated credit facility

By Sara Rosenberg

New York, Dec. 17 - Globalstar Inc. closed on a $150 million amended and restated credit facility due Dec. 31, 2012, according to a news release.

Thermo Funding Co. LLC, which is controlled by Jay Monroe, Globalstar's chairman and chief executive officer, is providing the loan.

Under the amended agreement, Globalstar is permitted to incur additional term loans on an equally and ratably secured, pari passu basis in an aggregate amount of up to $250 million. Globalstar has not yet sought or obtained such additional funding.

The facility replaces the company previous credit facility with Wachovia Investment Holdings, LLC.

Interest rates on the facility are unchanged from the prior credit agreement.

Proceeds will be used to continue the ongoing design and deployment of the company's second-generation satellite constellation and upgrades to its ground segment.

"The amended agreement, which was reviewed and approved by a committee of the independent members of our board of directors, revises certain financial covenants in the credit agreement and ensures Globalstar will have complete access to the credit facility while providing the company with the ability to draw the funds as and when required," said Monroe in the release.

Globalstar is a Milpitas, Calif.-based provider of mobile satellite voice and data services to businesses, government and individuals.

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