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Globalstar Annual Report (Amendment), Year Ended Dec 31, 2008

Filing Date
Filed May 11, 2009
Period End
December 31, 2008
Security
GSAT
In the record · 2016–202610-K1310-Q328-K105

GSAT filed 13 annual reports (10-K), 32 quarterly reports (10-Q) and 105 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Nov ’17Nov ’17
  2. Auditor change8-K · Mar ’20Mar ’20
  3. Material agreement8-K · Feb ’23Feb ’23
  4. FY2024 annual report10-K · Feb ’25Feb ’25

01—Abstract

Summary

Summary of the 10-K/A filed May 11, 2009. Cited figures are marked; the original filing is the authoritative source.

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 $120,000a for mandatory approval. Services provided by Thermo aggregated $449,000 in 2008, accounted for as a capital contribution.

Financially, Globalstar has a $200 millionb 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 millionc in interest and fees to Thermo Funding Company, which were capitalized.

02—Key points

Key Highlights

  1. Amendment 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.
  2. Globalstar has a formal policy for reviewing and approving related-person transactions, with the Audit Committee responsible for transactions exceeding $120,000 annually.
  3. In 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.
  4. A 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.
  5. As 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.
  6. The 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.
  7. In 2008, Globalstar incurred $11.9 million in interest and fees related to the credit agreement with Thermo Funding Company, which were capitalized.

03—Questions

Frequently Asked Questions

  1. What is the primary purpose of this filing?

    This filing is an amendment (Amendment No. 2) to Globalstar's 2008 Annual Report on Form 10-K. It mainly serves to correct a typographical error in the section detailing related-person transactions and director independence, and to include updated certifications from the CEO and CFO as required by the Sarbanes-Oxley Act of 2002.

  2. What are the key related-party transactions disclosed?

    The filing details reimbursements to Thermo for expenses related to their personnel assisting Globalstar ($219,000 in 2008) and general administrative expenses incurred by Thermo on Globalstar's behalf ($449,000 in 2008, treated as a capital contribution). Additionally, it notes Globalstar purchased $7.7 million of services and equipment from a company chaired by director Ken Jones.

  3. What is the status of Globalstar's credit facilities as of March 31, 2009?

    As of March 31, 2009, Globalstar had a $200 million credit facility consisting of a $100 million revolving credit facility (with $73.8 million drawn) and a $100 million delayed draw term loan facility (fully drawn). The company also has the option to incur up to an additional $250 million in term loans. These obligations are secured by substantially all of the company's assets.

  4. Are there any significant financial covenants or restrictions related to the credit facilities?

    Yes, the credit agreement includes limitations on capital expenditures, a requirement to maintain a minimum liquidity of $5.0 million, and a maximum consolidated senior secured leverage ratio of 5.0 to 1.0 after certain operational milestones are met.

04—Continue

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