Globalstar to make stock offer for $125 million

by and

WASHINGTON — Mobile satellite services provider Globalstar announced after Wednesday’s closing bell a proposed public offering of $125 million in shares of voting common stock.

Shares of the Covington, Louisiana company’s stock, which trades on the New York Stock Exchange, closed Tuesday at $1.81 a share.

In a filing Wednesday evening with the U.S. Securities and Exchange Commission, Globalstar said Thermo Capital Partners LLC — which is led by Globalstar chairman and chief executive Jay Monroe — intends to buy up to $20 million in shares during the public offering. Thermo Capital is Globalstar’s controlling shareholder.

Globalstar intends to set aside 80 percent of the proceeds from the stock offering to service its debt with BPIFAE, the French export credit agency formerly known as Coface, to which the satellite operator owes $521.3 million. Coface assisted Globalstar in financing its second generation constellation of 24 low-Earth orbiting satellites, which the company built, launched and brought into service for a total investment of $1.1 billion.

Globalstar’s total debt stood at $638.4 million as of June 30. The satellite operator reported a net loss of $132.6 million on last year’s $96.9 million revenue, counting to Dec. 31, 2016, and a net loss of $72.3 million on 2015 revenue of $90.5 million.