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Thursday, November 02, 2006

Globalstar IPO: Relaunch of the Satellite Phone

Globalstar, Inc. (GSAT-NASDAQ) has priced its IPO of 7,500,000 shares of common stock at $17.00 per share, which is higher than the 6.5 million shares indicated. All of the shares are being offered by Globalstar.

Wachovia Capital Markets and J.P. Morgan are serving as joint book-runners; Jefferies is serving as co-manager of the offering. Globalstar has granted the underwriters a 30-day option to purchase up to an additional 1,125,000 shares to cover over-allotments.

Globalstar intends to use substantially all the net proceeds from this offering to fund in part the procurement and launch of its second-generation satellite constellation and related upgrades to its gateways and other ground facilities.

Globalstar, as we have noted before, is the re-emerged IPO of the old Globalstar (GSTRF)-old ticker) that came out of bankruptcy. It is the nearly-global satellite phone and data transmission company. It has almost 200,000 activated satellite voice and data units in more than 120 countries. Global customer segments include: oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational users.

The company claims that it is not tied to the old Globalstar, but that is because of bankruptcy laws.

Jon C. Ogg
November 2, 2006

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