GSAT - Globalstar pops 8% as it discloses $252M loan from Apple for satellite service

Globalstar ( NYSE: GSAT ) shares rose more than 8% on Tuesday after the satellite telecommunications company disclosed Apple ( NASDAQ: AAPL ) has provided it with additional financial assistance.

In an 8-K filing , Globalstar ( GSAT ) said its partner - publicly known to be Apple ( AAPL ) - had given the company $252M in the form of a prepayment to be used for satellite manufacturing costs, as well as launch and other costs associated with the constellation used for Apple's ( AAPL ) Emergency SOS satellite feature.

Globalstar ( GSAT ) said the $252M from Apple ( AAPL ) replaces the need to find third-party financing.

Under terms of the agreement, Gloablstar ( GSAT ) will be paid back in 16 installments, starting no later than the third quarter of 2025.

Apple ( AAPL ) announced the new feature, which lets users who are out of range from cell towers, access the satellites by pointing the phone at a sky and connecting to one of Globalstar's ( GSAT ) satellites, in September.

In November, Apple ( AAPL ) said it would spend $450M on U.S. infrastructure as the tech giant gets its Emergency SOS texting feature for the iPhone 14 off the ground, with the "majority" of the money going towards Globalstar ( GSAT ).

Apple's ( AAPL ) satellite communications feature was initially available in just the U.S. and Canada, but it was expanded to much of western Europe in December .

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