GSAT - Why Globalstar Stock Leaped 11% Higher Today
2023-03-29 18:37:18 ET
It's almost always good news when a company dramatically improves its financing situation. Such was the case on Tuesday with satellite specialist Globalstar (NYSEMKT: GSAT) , which saw its share price rise by just under 11% thanks to a new bond sale. That increase was far higher than the incremental rise of the S&P 500 index on the day, which bumped up a comparatively light 1.4%.
Globalstar, perhaps best known as the provider of satellite technology for recent model iPhones from tech superstar Apple , made its announcement before market open. It said that it has entered into a agreement to sell $200 million worth of senior notes. The buyer is alternative investment firm Värde Partners.
The notes carry an annual interest rate of 13% and mature in 2029. Globalstar said it expects to close the sale on or around this Friday, March 31.
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Why Globalstar Stock Leaped 11% Higher Today