Globalstar Announces $38 Million Capital Raise

Globalstar GSAT today announced that it has completed a private placement with select current institutional investors including Thermo Funding Company LLC, to raise initial gross proceeds of $38 million, before deducting fees and other offering expenses. Additionally, investors have the option to invest up to an incremental $12 million over an approximate three month period on the same principal terms. Lazard Capital Markets LLC served as the sole placement agent. Under the terms of the transaction, Globalstar issued $38 million in principal amount of 5% Convertible Senior Unsecured Notes. Investors will also receive warrants to purchase an aggregate of 15.2 million shares of common stock. The notes will be convertible at a price of $1.25 per share and are guaranteed on a subordinated basis by certain domestic subsidiaries of Globalstar. The warrants will be exercisable until five years from the date of issuance at an exercise price of $1.25 per share.  Globalstar's controlling stockholder has entered into a voting agreement to vote in favor of this transaction. The Company is also required to file a registration statement with the Securities and Exchange Commission to permit the resale of the securities and the underlying shares of common stock.