Summary
Globalstar, Inc. (GSAT) filed an 8-K on April 23, 2013, detailing a material amendment to a forbearance agreement related to its 5.75% Convertible Senior Notes due 2028. The company and the Forbearing Note Holders have extended the forbearance period until April 29, 2013. This extension is crucial as it provides Globalstar additional time to pursue a potential exchange transaction for these notes. In exchange for the extended forbearance, Globalstar has agreed to issue shares of its common stock to the Forbearing Note Holders if the exchange transaction is not completed within five days following the forbearance period's end. The Note Holders have also agreed to cooperate with the company in good faith to finalize an exchange transaction before the forbearance expires. Investors should note that the company cannot guarantee the consummation of this exchange transaction.
Key Highlights
- 1Globalstar entered into a second amendment to its forbearance agreement concerning its 5.75% Convertible Senior Notes due 2028.
- 2The forbearance period has been extended through April 29, 2013.
- 3The company agreed to issue shares of its common stock to Forbearing Note Holders if an exchange transaction is not consummated within five days after the forbearance period ends.
- 4Forbearing Note Holders have agreed to support and cooperate with the Company in consummating an exchange transaction.
- 5The terms of the original forbearance agreement, except for the amendments described, remain unchanged.
- 6The company announced this amendment via a press release dated April 22, 2013.