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Globalstar Announces $400 Million Financing Debt and Equity Fundraising Secures Capital for Second-Generation Satellite
Constellation and Fully Funds the Company's Future Business Plan


http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/04-24-2006/0004345682&....

MILPITAS, Calif., April 24 /PRNewswire/ -- Globalstar, Inc., a world
leader in providing mobile satellite voice and data services to business,
announced today that it has closed a $400 million debt and equity
financing. The financing consists of $200 million of debt in the form of a
five-year term loan and a four-year revolving credit facility, both
underwritten by Wachovia Securities. The $200 million in equity capital is
being invested by affiliates of the Thermo Companies. Minority shareholders
in Globalstar will be provided an opportunity to participate in the equity
financing.
Globalstar intends to use the proceeds of the financing, as well as
cash from its ongoing business, to fund the design and deployment of the
company's second-generation satellite constellation, upgrades to its ground
segment and the launch of eight spare satellites for its current
constellation in early 2007. The second generation satellite constellation
will continue to provide Globalstar customers with industry leading voice
quality as well as increased data speeds to both handheld and fixed
subscriber equipment. Globalstar is already capable of providing ancillary
terrestrial component service or ATC, which the FCC authorized it to
provide in January. The second-generation satellite constellation will
fully integrate ATC and ensure the company's long-term capability to
provide ATC and other integrated wireless multimedia satellite solutions.
"This financing solidifies the funding for the future strategic growth
of Globalstar. We can now implement our plans for the next generation
satellite constellation and other initiatives that will better serve our
customers and grow our wireless telecommunications businesses through the
next decade and beyond" said Jay Monroe, Chairman and CEO of Globalstar,
Inc. Mr. Monroe added, "the current environment for this type of financing
is extraordinarily strong. This financing environment, combined with the
company's exceptional financial performance, has enabled us to fully fund
our business plan at this time."
Horace Zona, Managing Director of Wachovia Securities said, "Globalstar
represents an excellent credit, exhibiting growing revenue and
profitability which is both substantial and expanding. Wachovia has a
twenty year relationship with the Thermo Companies and looks forward to an
expanding relationship with Globalstar."
Earlier this year, Globalstar LLC converted from a limited liability
company into a corporation and is now known as Globalstar, Inc. Globalstar
is mandated by its organizational documents to register its shares with the
Securities and Exchange Commission prior to October 13th of this year.
Over the past 24 months Globalstar has consolidated various operations
in the Americas and Western Europe and opened a new satellite gateway
ground station in Florida. It is also in the process of constructing an
additional gateway in Alaska, which will open later this summer. With its
independent gateway operator-partners, the company has significantly
expanded its simplex data coverage by installing a number of new simplex
data appliqués throughout the world. In addition to its spare satellite and
second-generation constellation plan announcements, Globalstar has also
reported the signing of a $140 million agreement with QUALCOMM to
manufacture its current and next generation handset. In February the
company disclosed that it had activated its 200,000th customer unit.
About Globalstar, Inc.
With over 200,000 activated satellite voice and data units, Globalstar
offers high value, high quality satellite services to commercial and
recreational users from virtually anywhere in more than 120 countries. The
company's voice and data products include mobile and fixed satellite
telephones, simplex and duplex satellite data modems and flexible service
packages. Many land based and maritime industries benefit from Globalstar
with increased productivity from remote areas beyond cellular and landline
service. Global customer segments include; oil and gas, government, mining,
forestry, commercial fishing, utilities, military, transportation, heavy
construction, emergency preparedness, and business continuity as well as
individual recreational users. Globalstar data solutions are ideal for
various asset tracking, data monitoring and SCADA applications.
For more information regarding Globalstar, please visit Globalstar's
web site at http://www.globalstar.com
About Wachovia Securities
Wachovia Securities is the trade name for the corporate and investment
banking services of Wachovia Corporation and its subsidiaries, including
Wachovia Capital Markets, LLC, member NASD, NYSE, and SIPC and Wachovia
Bank, NA. Wachovia Corporation is one of the nation's largest diversified
financial services companies providing 13.4 million household and business
relationships with a broad range of banking, asset management, wealth
management and corporate and investment banking products and services.
Wachovia Corporation had assets of $541.8 billion, market capitalization of
$90.2 billion and stockholders' equity of $49.8 billion at March 31, 2006.
Contact: Dean Hirasawa of Globalstar, Inc., [phone], or
[e-mail].



SOURCE Globalstar, Inc.
Web Site: http://www.globalstar.com/