Summary
Globalstar, Inc. has announced the full repayment of its First Lien Credit Facility on November 8, 2021, totaling approximately $62.0 million. This repayment was primarily funded by drawing down $51.1 million from its debt service reserve account, with the remainder coming from existing cash on hand. The termination of the First Lien Credit Facility also triggers an automatic upgrade of Globalstar's Second Lien Term Loan Facility to a first lien position, which had an outstanding principal of approximately $255.0 million as of September 30, 2021. The company anticipates receiving a refund of roughly $2.5 million in insurance premiums related to the now-terminated facility.
Key Highlights
- 1Globalstar fully repaid its First Lien Credit Facility for approximately $62.0 million on November 8, 2021.
- 2The repayment utilized $51.1 million from the debt service reserve account and the rest from cash on hand.
- 3The First Lien Credit Facility has been terminated.
- 4The Second Lien Term Loan Facility's collateral status automatically upgraded to first lien upon the termination of the First Lien Credit Facility.
- 5The Second Lien Term Loan Facility had an outstanding principal of approximately $255.0 million as of September 30, 2021.
- 6Globalstar expects to receive a refund of approximately $2.5 million in insurance premiums.