Summary
Globalstar, Inc. (GSAT) has entered into a material definitive agreement with Terrapin Opportunity, L.P. for a committed equity line financing facility. This agreement allows Globalstar to potentially sell up to $30.0 million of its common stock to Terrapin over a 24-month period. The pricing of these shares will be based on the daily volume weighted average price, with a discount ranging from 3.5% to 8.0%. This financing provides Globalstar with flexibility to access capital as needed, while Terrapin's ownership is capped at 9.9% to avoid exceeding control thresholds. In conjunction with this financing, Globalstar has also entered into a Registration Rights Agreement, committing to file a resale registration statement for Terrapin's shares within specific timeframes. This ensures that the shares purchased by Terrapin can be resold into the public market. Financial West Group acted as the placement agent for this transaction, receiving fees and expense reimbursement. The company has also disclosed this arrangement via a press release on December 31, 2012.
Key Highlights
- 1Globalstar entered into a $30.0 million committed equity line financing facility with Terrapin Opportunity, L.P.
- 2The facility has a 24-month term, allowing Globalstar to draw down capital at its discretion.
- 3Share prices will be determined by market prices with a discount of 3.5% to 8.0%.
- 4Terrapin's beneficial ownership is capped at 9.9% of outstanding common stock.
- 5Globalstar granted registration rights to Terrapin for resale of purchased shares.
- 6An initial resale registration statement is to be filed within 60 days and declared effective within 120-180 days.
- 7Financial West Group served as the placement agent for the financing.