Dallas, Texas 09/20/2013 (Financialstrend) – Globalstar, Inc. (OTCMKTS:GSAT) was delisted from NASDAQ in December ’12 due to the company stock trading well below its minimum bid price for a sustained period of time. The share price had plummeted to $0.26 per share in Decembe’12 following NASDAQ. Since then the company shares have rebounded back by over 300%. As of close of business on September 19, the company shares were trading at $1.06 per share. It was down almost 0.93% and has been under-performing both Dow Jones and the telecommunications index which were down 0.26% and 0.27% respectively yesterday.
In the past 30 days, the company share price has gone up by over 70%. This follows a new agreement that Global star was able to reach with the syndicate of its current lenders which include BPN Paribas and Societe Generale for restricting its existing $586 million senior secured credit facility which it had originally entered into in 2009. As per the current agreement, the lenders have agreed to overlook and waive off all of Globalstar’s previous defaults. They have allowed the company additional two and a half year of time to repay part of the interest and principal. As per terms of this amended agreement GSAT will have the flexibility to string out repaying the remaining $235.5 million principal amount till 2019.
Fuelled by this credit restructuring, the company has bought more time to become profitable. At its current market price, the market capitalization is $436 million with over 407 million outstanding shares. The stock received unusual interest from the investor community today when over 6.6 million shares were traded over the counter. In comparison its 65 day average trading volume is 2.35 million per share. The shares are trading close to its 52 week high price of $1.09 and 324% above its 52 week low price.