Värde Provides $200 Million in Financing to GlobalStar

Satellite company GlobalStar has received a fresh note funding round. The company said last week that it had signed into a purchase contract with an affiliate of investment firm Varde Partners as well as others, allowing for the sale of $200 million in principal amount of 13 percent Senior Notes maturing in 2029. The revenues will largely be utilized to settle the roughly $148 million outstanding balance due under Globalstar's 2019 facility agreement. The remainder of the money will be utilized for fees and other business operations. 

Rebecca Clary, the chief financial officer of Globalstar, stated that this funding is a crucial success in a string of accomplishments over the past several months that have secured their balance sheet. Notwithstanding the challenging financial markets climate, they were able to complete this funding effectively. They welcome the new investors and express gratitude to the whole team and advisers for accomplishing what they consider to be an outstanding outcome for the firm and its shareholders. 

Francisco Milone, partner at Varde Partners, stated that they are glad to join with Globalstar as they position themselves for expansion over the next few years. Varde remains committed to offering capital solutions to high-quality businesses with financial requirements. After a $252 million loan from Apple, GlobalStar will utilize the extra funding to deploy a new fleet of Low Earth Orbit (LEO) satellites that will link to the smartphone manufacturer's gadgets. Globalstar's first-generation constellation, launched in 1991 as a joint venture between Loral Corporation and Qualcomm, consists of 48 LEO satellites, with an extra four satellites in orbit as spares, while its second-generation network consists of 24 satellites. The company runs twenty-four ground stations.