Item 8.01 Other Events.
Repayment of First Lien Credit Facility
On November 8, 2021 Globalstar, Inc. ("Globalstar" or the "Company") repaid all
outstanding amounts under its First Lien Credit Facility with a syndicate of
bank lenders, including BNP Paribas, Société Générale, Natixis, Crédit Agricole
Corporate and Investment Bank and Crédit Industriel et Commercial, such
repayment being in the amount of approximately $62.0 million (the "Repayment").
Upon making the Repayment, the First Lien Credit Facility was terminated in
accordance with its terms. The Repayment was made using approximately $51.1
million from the debt service reserve account the Company maintained, with the
balance coming from cash on hand. In connection with the Repayment, the Company
expects to receive a refund of approximately $2.5 million in insurance premiums
paid pursuant to the First Lien Credit Facility.
Under the terms of the Company's Second Lien Term Loan Facility with Thermo, an
affiliate of EchoStar and certain other unaffiliated lenders, upon termination
of the First Lien Credit Facility and the release of the related liens, the
liens securing the Company's obligations under the Second Lien Term Loan
Facility automatically became secured first liens. As of September 30, 2021, the
outstanding principal amount of loans under the Second Lien Term Loan Facility
was approximately $255.0 million.
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