Shares of Globalstar Inc. GSAT charged 6.9% higher in morning trading Wednesday, after the telecommunications connectivity company announced a financing deal that didn’t include equity. The stock’s gain comes a day after it rose 2.3%, to bounce off Monday’s 13-month closing low of 99 cents. The company said it has entered into a purchase agreement with an affiliate of Värde Partners for the sale of $200 million in 13% senior notes due 2029, which are “non-convertible and therefore do not result in any equity dilution.” The company said it will use the proceeds from the financing to pay off what’s remaining in the 2019 facility agreement. “This financing is a critical step in a series of achievements over the last several months to secure our balance sheet. Despite a tough capital markets environment, we were able to successfully complete this financing,” said Chief Financial Officer Rebecca Clary. The stock has dropped 16.3% over the past three months, while the S&P 500 SPX has tacked on 4.3%.
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