The bank syndicate includes BNP Paribas, Natixis, Societe Generale, Calyon, and Credit Industriel et Commercial (CIC), each of which will act as Mandated Lead Arranger, and BNP Paribas acting as Coface Agent. Coface will provide long-term credit insurance to facilitate the credit facility. The credit facility will bear interest at a floating LIBOR (London Inter-Bank Offer Rate), capped at 4 percent through 2012, and will be due semi-annually. Calculated today, this interest rate would be 3.27 percent. Scheduled semi-annual principal repayments will begin the earlier of eight months after the launch of the second generation constellation or December 15, 2011. Brown Brothers Harriman acted as financial advisor to Globalstar in connection with the transaction. The Company expects that this $738 million financing will fully fund the manufacture, delivery, and launch of the Company's Globalstar 2.0 2G network and ground facilities, plus certain long-lead items connected with the accelerated delivery of additional 2G spare satellites and will provide the Company with working capital. Globalstar expects to be the first global mobile satellite voice and data company to deliver and deploy its 2G satellites and the first to offer an IP (Internet Protocol)-based network. The financing will also facilitate the introduction of Globalstar's nexgen satellite interface chipsets being designed by Hughes Network Systems. These network upgrades will support the Company's new mobile satellite services, which will feature industry leading voice quality as well as increased data speeds to both handheld and fixed subscriber equipment.
Satnews Daily
June 8th, 2009
Globalstar Gains Millions
The bank syndicate includes BNP Paribas, Natixis, Societe Generale, Calyon, and Credit Industriel et Commercial (CIC), each of which will act as Mandated Lead Arranger, and BNP Paribas acting as Coface Agent. Coface will provide long-term credit insurance to facilitate the credit facility. The credit facility will bear interest at a floating LIBOR (London Inter-Bank Offer Rate), capped at 4 percent through 2012, and will be due semi-annually. Calculated today, this interest rate would be 3.27 percent. Scheduled semi-annual principal repayments will begin the earlier of eight months after the launch of the second generation constellation or December 15, 2011. Brown Brothers Harriman acted as financial advisor to Globalstar in connection with the transaction. The Company expects that this $738 million financing will fully fund the manufacture, delivery, and launch of the Company's Globalstar 2.0 2G network and ground facilities, plus certain long-lead items connected with the accelerated delivery of additional 2G spare satellites and will provide the Company with working capital. Globalstar expects to be the first global mobile satellite voice and data company to deliver and deploy its 2G satellites and the first to offer an IP (Internet Protocol)-based network. The financing will also facilitate the introduction of Globalstar's nexgen satellite interface chipsets being designed by Hughes Network Systems. These network upgrades will support the Company's new mobile satellite services, which will feature industry leading voice quality as well as increased data speeds to both handheld and fixed subscriber equipment.