icon
icon
icon
icon
Upgrade
Upgrade

News /

Articles /

Globalstar (GSAT.US) and Apple (AAPL.US) have reached a new agreement to provide mobile satellite extension services.

Market IntelFriday, Nov 1, 2024 8:50 am ET
1min read

Zhitong Finance APP noticed that Globalstar's (GSAT.US) stock price rose by 64% before Friday's market opening after the company announced to expand its agreement with its customer Apple (AAPL.US). The expanded mobile satellite services network will be owned by a unit of Globalstar SPE.

Apple will pay Globalstar upfront cash, including approved capital expenditures related to the extended MSS network, including: (1) infrastructure prepayments of up to $1.1 billion, which will be funded on a quarterly basis during the construction period, Globalstar SPE will use these funds, together with proceeds from the following stock sales to pay the extended MSS network maturity amount (including but not limited to construction and launch costs); (2) the amount required by the Company to repay its outstanding 13.00% senior notes due 2029 ("2029 Notes"). The infrastructure prepayments and funds for current debt repayment are included in the "2024 Prepaid Agreements".

In addition, Apple has agreed to purchase 4 million B shares of Globalstar SPE (representing 20% of equity) for $400 million, which is expected to be paid at closing on November 5, 2024, subject to closing conditions.

Globalstar estimates that its annual total revenue will be more than double its 2024 annualized level in the first year of satellite service expansion.

Comments

Add a public comment...
Post
Refresh
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
You Can Understand News Better with AI.
Whats the News impact on stock market?
Its impact is
fork
logo
AInvest
Aime Coplilot
Invest Smarter With AI Power.
Open App