Globalstar plans to issue 4.99 million shares in exchange for 20% of its 5.75% convertibles

By Jennifer Chiou

New York, Oct. 24 - Globalstar Inc. announced that it expects to issue 4,985,440 shares in exchange for $30 million, or 20%, of its 5.75% 20-year convertible senior notes.

The company added that it will pay a nominal amount of cash for fractional shares as well as $4.3 million for a make-whole payment for early conversion. The figure makes up the next five semiannual interest payments.

A holder of the notes submitted a notice of conversion to the trustee in order to convert the notes, the company said, adding that other noteholders have contacted Globalstar regarding conversion.

Globalstar priced $135 million of the convertibles on April 10, an amount subsequently increased to $150 million through exercise of the greenshoe.

The notes had a 45% initial conversion premium and a conversion price of $6.02.

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

© 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.