Correction: Globalstar to price $135 million of 20-year convertibles on April 9

New York, April 2 - Globalstar Inc. plans to price $135 million of 20-year convertible senior notes after the markets close on April 9, not April 2, as reported Tuesday in the Prospect News Convertibles Daily.

The notes are talked at a coupon of 5.25% to 5.75% and an initial conversion premium of 45% to 50%. There is an over-allotment option for an additional $15 million.

Merrill Lynch and Deutsche Bank are the joint bookrunners for the registered off-the-shelf offering. The notes will be non-callable for the first five years and may be put in years five, 10 and 15.

Globalstar will enter into a concurrent share lending agreement involving 15 million to 20 million common shares with a Merrill Lynch affiliate to facilitate the establishment of hedge positions.

Globalstar, a Milpitas, Calif.-based provider of satellite voice and data services, intends to use part of the proceeds to buy government securities for an escrow account to fund the first six semiannual interest payments. It will also use the proceeds to help buy and launch Globalstar's second-generation satellite and related ground facilities and for other general corporate purposes.

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