Globalstar, Inc. (Nasdaq:GSAT) has announced that Coface has agreed to provide a guaranty in support of a proposed $574 million credit facility to be extended by a syndicate of banks to Globalstar as borrower.

Coface, the export credit agency acting on behalf of the French government, has advised Globalstar that it intends to provide long-term credit insurance to facilitate the proposed credit facility. Banks who have received initial credit committee approvals in relation to the approximately 6.30 percent interest rate credit facility include BNP Paribas, Natixis, and Societe Generale, which would act as mandated lead arrangers (BNP Paribas is acting as Coface Agent). The credit facility and receipt of funding by Globalstar is subject to closing conditions and there can be no assurance at this time that any such closing will actually occur. The principal closing conditions include the conversion into equity at closing of senior secured term and revolving credit loans to Globalstar from its principal stockholder Thermo Funding Company LLC and the receipt by Globalstar of additional equity and contingent equity in an amount of approximately $100 million, most of which is expected to be provided by Thermo Funding.

Globalstar intends to use the financing to solidify its long-term space system by funding the manufacture and delivery of the Globalstar 2G satellites by Thales Alenia Space, as well as the launch of those satellites by launch services provider Arianespace. The financing would also be used to facilitate certain long-lead items connected with the accelerated delivery of the Company's 2G satellites, the completion of Globalstar's nexgenn ground facilities and the design of Globalstar's nexgen satellite interface chipsets.