GlobalStar to repay debt to EchoStar
February 15, 2023
By Chris Forrester
GlobalStar, which has won potential support from Apple for its iPhone emergency service, is to repay cash owed to EchoStar under the 2019 Facility Agreement signed between GlobalStar and EchoStar.
The Apple project could not have proceeded had the debt not been repaid.
GlobalStar says all its outstanding obligations to EchoStar will be met within the next 30 days.
GlobalStar is finalising its plans to satisfy its remaining payment obligations under the Contractor Agreements, and intends to use cash flows generated from operations to pay a significant portion of these obligations, thereby reducing external financing needs. The Company expects to provide additional information in the near term.
The problem was that GlobalStar has first to close its “first lien debt agreement” of $150 million with EchoStar. Then, and only then, can Apple Inc. kick in with its $450 million of extra funding and related to the September 2022 deal whereby Apple planned to expand its iPhone emergency – and beyond – services around the plant, and using Globalstar’s proposed satellites.