Globalstar amends, revising principal repayment schedule, covenants

By Sara Rosenberg

New York, Jan. 7 - Globalstar Inc. amended its credit facility, delaying a principal repayment and modifying covenants, according to an 8-K filed with the Securities and Exchange Commission on Friday.

Specifically, the amendment pushed off the first principal repayment date by up to six months to the earlier of eight months after the launch of the 24 second-generation satellites or June 15, 2012 and extends the final maturity date by the amount of the delay to the first principal repayment date.

As for covenants, the minimum adjusted consolidated EBITDA requirement was reduced for the period ended Dec. 31 through the period ending June 30, 2012, and the effectiveness of the minimum debt service coverage ratio was delayed by six months to the period starting on July 1, 2011 and ending Dec. 31, 2012 if no principal payment is required to be made in 2011.

Lastly, the amendment extended the last date for required in-orbit acceptance of 24 second-generation satellites by nine months to Sept. 1, 2012 and requires in-orbit acceptance of 18 second-generation satellites by Jan. 1, 2012.

The amendment was completed on Dec. 22.

BNP Paribas is the agent on the deal.

Globalstar is a Milpitas, Calif.-based provider of mobile voice and data communications services through satellite.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.