spacetoday.net: Globalstar secures support for new financing

Posted: Thu, Mar 26, 2009, 5:58 AM ET (0958 GMT)
Mobile satellite operator Globalstar announced Wednesday that it has won support from a French government agency for a new round of credit needed for the company's next-generation satellite system. Coface, the export credit agency acting on behalf of the French government, will provide credit insurance for a syndicate of banks that plan to provide Globalstar a $574-million credit facility. The money is needed by Globalstar to help finance the construction of 24 next-generation satellites, being built by Thales Alenia Space, and their launch on Soyuz rockets from Kourou, French Guiana. The funding would also be used for ground facilities and chipsets for receivers. Globalstar is seeking to start launching those spacecraft as soon as late this year to replace its existing fleet of spacecraft, which are suffering transponder failures that make them unavailable for phone service. Globalstar's stock closed up 34 percent Wednesday on the news.