The proceeds from the notes will be used primarily to repay all remaining amounts due under Globalstar's 2019 facility agreement of approximately $148 million. The remaining proceeds will be used for fees and general corporate purposes.
Rebecca Clary, Globalstar's Chief Financial Officer, said "This financing is a critical step in a series of achievements over the last several months to secure our balance sheet. Despite a tough capital markets environment, we were able to successfully complete this financing. We welcome the new investors and thank our entire team and advisors for delivering what we believe is an excellent result for our company and its shareholders."
Dave Kagan, Globalstar's Chief Executive Officer, added "We can now shift our focus to executing our business plan across our four pillars of value creation, which include transitioning to more wholesale revenue generated from satellite capacity, our rapidly expanding IoT services and the continuing revenue and profitability from our legacy business and retail SPOT customers.
"The fourth pillar, our largest opportunity, is spectrum monetization on a global basis anchored by Band 53 in 11 countries and counting with an expanding ecosystem that facilitates deployments. We are now well positioned for a bright future with increasing opportunities and a balance sheet to help us realize those opportunities."
Francisco Milone, Partner at Varde Partners, added "We are pleased to partner with Globalstar as they position themselves for growth in the coming years. Varde continues to focus on providing capital solutions to high-quality companies with capital needs."
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