Globalstar spikes 10% after disclosing $252M loan from Apple

In an 8k filing, out earlier on Tuesday February 28, Globalstar (GSAT) said it and Apple (AAPL) , its partner in Emergency SOS via satellite services, agreed to amend its previously disclosed Partnership Agreements to provide for, among other things, the Partner’s prepayment of $252M to the Company . The Company plans to use the proceeds of the Prepayment to pay amounts currently due and payable, and future amounts due, under its previously disclosed Satellite Procurement Agreement with Macdonald, Dettwiler and Associates Corporation, as well as launch, insurance and ancillary costs incurred in connection with the construction and launch of these satellites. The Prepayment replaces the Company’s requirement to raise third-party financing for such costs as previously required under the Partnership Agreements and will be funded on a quarterly basis, subject to certain conditions in the agreement. The remaining amount of the satellite costs is expected to be funded from Globalstar’s operating cash flows. The Fly notes that in early November last year, Apple said that a majority of funding for its $450M investment from Apple’s Advanced Manufacturing Fund provides the critical infrastructure that supports Emergency SOS via satellite for iPhone 14 models goes to Globalstar, a global satellite service headquartered in Covington, Louisiana. "Apple’s investment provides critical enhancements to Globalstar’s satellite network and ground stations, ensuring iPhone 14 users are able to connect to emergency services when off the grid." Shares of Globalstar are currently up 9.5% or 11c per share to $1.27 per share.