PARIS — Mobile satellite services operatoron Nov. 25 said its ground-hardware provider, Hughes Network Systems, has agreed to purchase $4.3 million in Globalstar stock at a 7 percent discount to its recent trading value in lieu of cash payment for Hughes’ past services to Globalstar.
In a filing with the U.S. Securities and Exchange Commission, Globalstar said it would be filing a registration covering the resale of up to $14.5 million in stock, a figure that represents “the value of all the shares potentially issuable to Hughes” under an August agreement.
Germantown, Md.-based Hughes has waived cash payment from Globalstar on multiple occasions in recent years as Globalstar has struggled with degrading first-generation satellites and the financing of its second-generation constellation.
Much of what Hughes is owed has been earning a 10 percent annual interest rate. Globalstar paid Hughes $5.8 million in cash in August, and $5 million in October, under the August agreement.
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