Summary
This filing is an amendment to Globalstar, Inc.'s 2008 Form 10-K, primarily addressing administrative corrections and Sarbanes-Oxley certifications. Key disclosures relate to related-party transactions and the company's credit facilities. The company has a policy for reviewing related-person transactions, overseen by the Audit Committee, with a threshold of $120,000 for mandatory approval. Services provided by Thermo aggregated $449,000 in 2008, accounted for as a capital contribution. Financially, Globalstar has a $200 million revolving and delayed draw term loan facility with Thermo Funding Company, as of March 31, 2009, with $73.8 million drawn on the revolving facility and $100 million on the delayed draw facility. The company also has the option to incur an additional $250 million in term loans. These obligations are secured by substantially all of the company's assets. The credit agreement imposes limitations on capital expenditures and requires minimum liquidity. In 2008, Globalstar incurred $11.9 million in interest and fees to Thermo Funding Company, which were capitalized.
Key Highlights
- 1Amendment No. 2 to the 2008 Form 10-K filed to correct a typographical error in Item 13 (Certain Relationships and Related Transactions, and Director Independence) and to include updated CEO/CFO certifications required by Sarbanes-Oxley.
- 2Globalstar has a formal policy for reviewing and approving related-person transactions, with the Audit Committee responsible for transactions exceeding $120,000 annually.
- 3In 2008, Globalstar reimbursed Thermo approximately $219,000 for expenses related to services provided by Messrs. Monroe, Lynch, and Roberts, and recorded approximately $449,000 for general and administrative expenses incurred by Thermo on Globalstar's behalf.
- 4A significant portion of Globalstar's financing comes from a $200 million revolving credit facility and a delayed draw term loan facility with Thermo Funding Company, as amended and restated.
- 5As of March 31, 2009, $73.8 million was drawn on the revolving credit facility and $100.0 million on the delayed draw term loan facility.
- 6The credit agreement is secured by a first lien on substantially all of Globalstar's assets (excluding FCC licenses) and includes covenants such as limits on capital expenditures and minimum liquidity requirements.
- 7In 2008, Globalstar incurred $11.9 million in interest and fees related to the credit agreement with Thermo Funding Company, which were capitalized.