Globalstar expects $62 million bridge loan for senior facility payment

By Wendy Van Sickle

Columbus, Ohio, June 28 – Globalstar, Inc. said its board of directors approved a $62 million bridge facility to fund the June principal and interest payments to the lenders of and maintain compliance under its senior credit facility.

The senior facility is guaranteed by BPIFAE.

The bridge loan is expected to close Friday and to be funded by multiple shareholders, according to a news release.

The bridge facility will be fully subordinated to the BPIFAE facility and will be senior to the existing Thermo subordinated loan.

It will bear payable-in-kind interest and is expected to be replaced by a new second-lien facility concurrent with a broader refinancing in the near-term.

“The bridge facility represents the first step of a two-part refinancing of the company,” Jay Monroe, executive chairman of Globalstar, said in the release.

“We continue to work towards and are confident in our ability to complete a broader refinancing in the near-term. We look forward to announcing the comprehensive details of a transaction as soon as possible.

“We believe the resulting pro forma capital structure represents a significant improvement from the existing structure and will provide an extended runway for the company going forward.

“We expect this refinancing to allow the company to deliver on the extensive potential before us with respect to both the core satellite business and terrestrial spectrum opportunities.”

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

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