Telematics Weekly

industry insight, news and interviews paid sponsor: Sancomm, Inc. Free Subscription September 6, 2010

Glob­al­star Inc. announced that it has com­pleted a financ­ing of approx­i­mately $738 mil­lion. The total financ­ing com­bines a pre­vi­ously announced $586 mil­lion credit facil­ity and reg­is­tered direct offer­ing of con­vert­ible debt and war­rants for $55 mil­lion plus a deposit by Thermo Fund­ing, the major­ity share­holder of Glob­al­star, of $60 mil­lion into a con­tin­gent equity account, and fund­ing of a debt ser­vice reserve account. The $738 mil­lion financ­ing fully funds the man­u­fac­ture, deliv­ery and launch of the Company’s Glob­al­star 2.0 second-​​generation net­work and ground facil­i­ties, plus cer­tain long-​​lead items con­nected with the accel­er­ated deliv­ery of addi­tional second-​​generation spare satel­lites, and pro­vides the com­pany with work­ing cap­i­tal needed for cur­rent and future operations.

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