Globalstar pushes out first payment date on Coface loans by 18 months, extends facility to 2022

By Susanna Moon

Chicago, Aug. 1 - Globalstar, Inc. said its senior French lenders have agreed to push out the first principal payment date on its Coface facility to December 2014, with no principal payment more than $5 million until June 2016.

The first par payment date was extended from June under the company's amended Coface facility agreement, according to a company press release.

The company said the repayment schedule defers a total of $235.4 million through December 2019 and also extends the final maturity of the facility to Dec. 31, 2022.

The amended agreement also revises the financial covenants to correspond to the company's new business plan reflecting the delay in delivery of its second-generation satellites.

Also, upon closing, all existing disclosed defaults under the facility will be waived.

The agreement is conditioned on payment of fees and expenses, and the receipt of legal opinions and amendments to vendor agreements, which are expected to be satisfied this month, the company said.

Based in Covington, La., Globalstar is a provider of mobile voice and data communications services via satellite.

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