Sunday, April 23, 2006

Globalstar Announces $400 Million Financing

Globalstar, a provider of mobile satellite voice and data services, raised $400 million in debt and equity financing. The financing consists of $200 million of debt in the form of a five-year term loan and a four-year revolving credit facility, both underwritten by Wachovia Securities. The $200 million in equity capital is being invested by affiliates of the Thermo Companies. Minority shareholders in Globalstar will be provided an opportunity to participate in the equity financing.

Globalstar said it plans to use the proceeds of the financing, as well as cash from its ongoing business, to fund the design and deployment of the company's second-generation satellite constellation, upgrades to its ground segment and the launch of eight spare satellites for its current constellation in early 2007.

Globalstar's second generation satellite constellation will continue to voice services as well as increased data speeds to both handheld and fixed subscriber equipment. Globalstar is already capable of providing ancillary terrestrial component service or ATC, which the FCC authorized it to provide in January. The second-generation satellite constellation will fully integrate ATC and ensure the company's long-term capability to provide ATC and other integrated wireless multimedia satellite solutions.

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