GSAT - Globalstar jumps 8% as it shores up balance sheet with new $200M in financing

2023-03-29 09:19:01 ET

Globalstar stock ( NYSE: GSAT ) is 7.9% higher premarket after the company announced arranging $200M in financing to secure its balance sheet.

The company entered a purchase agreement with an affiliate of Värde Partners and others providing for the sale of $200M worth of 13% senior notes due 2029 - nonconvertible notes that won't result in dilution.

Proceeds will be used mainly to repay all the remaining amounts due under a 2019 facility agreement, about $148M, with the rest going to fees and general purposes.

“We can now shift our focus to executing our business plan across our four pillars of value creation, which include transitioning to more wholesale revenue generated from satellite capacity, our rapidly expanding IoT services and the continuing revenue and profitability from our legacy business and retail SPOT customers," said CEO Dave Kagan.

"The fourth pillar, our largest opportunity, is spectrum monetization on a global basis anchored by Band 53 in 11 countries and counting with an expanding ecosystem that facilitates deployments," he added.

The stock saw a similar move a month ago after disclosing a loan from Apple for satellite service.

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