Globalstar agrees to issue stock, pay cash in exchange for $28.49 million 5.75% convertibles

By Angela McDaniels

Tacoma, Wash., Dec. 31 - Globalstar, Inc. said it agreed to issue 4,734,858 shares of its common stock and pay $600,000 in cash in exchange for $28.49 million of its 5.75% senior convertible notes due 2028 beneficially owned by institutional holders.

The convertibles will be retired and cancelled, according to an 8-K filing with the Securities and Exchange Commission.

Globalstar entered into the agreements to reduce its debt and interest costs by $31 million, increase its equity and improve its balance sheet and liquidity.

The company said it will consider entering into additional exchanges from time to time.

Milpitas, Calif.-based Globalstar is a provider of satellite voice and data services.

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