Posts for Ticker ‘GSAT’

Iridium Comes Public Again Via Greenhill SPAC (GHQ, GHL, GSAT, SKYT)

Iridium_logoGHL Acquisition Corp. (AMEX: GHQ), a SPAC and affiliate of Greenhill & Co. Inc. (NYSE: GHL), is going to be rolling up an interesting operation.  It is acquiring the old global satellite phone company Iridium Holdings LLC.  The company will provide a $500 million cash infusion whichwill allow Iridium to finance its new finance system. It will valueIridium at roughly $591 million depending upon your calculations andthe final closing terms.

Read More »

Posted on: September 23, 2008 – 1:11 pm in IPOs, Satellite, Wireless, , , ,

52-Week Low Club (GY, GSAT, LIOX, NCC, PLA, SWWC, WNR)

Today didn’t look like the normal 52-week low brigade.  Usually there is a massive implosion of some sort that took a stock under.  Most of these were just more selling trends on news that has already been out.  Here are today’s featured lows:

  • GenCorp Inc. (NYSE: GY) wasn’t under its 52-week low in the last hour today, but hit $8.23 vs. an $8.28 prior. Aerospace & Defense and Real Estate. Bad combo.
  • Globalstar (NASDAQ: GSAT) got back above its prior $3.08 low over the last 52-weeks, but this one just seems to keep getting worse.
  • Lionbridge Technologies Inc. (NASDAQ: LIOX) was down at $2.66, under the $2.70 to $6.29 range.  It looks like the lion’s roar is is a meow, at best.
  • National Citiy Corp (NYSE: NCC) was down over 4% at $5.55, under the $5.76 to $35.86 range.
  • Playboy (NYSE: PLA) going from bad to worse, and still not a cheap stock.  Down another 7% at $6.00 late in the day with a $6.38 to $12.00 52-week range.  If this keeps up Heff might have to turn in that mansion, and his activities too.
  • Southwest Water (NASDAQ: SWWC) managed to get back above the 52-week lows of $10.52 today, but water (and water utilities) is supposed to be one of those safe sectors.
  • Western Refining (NYSE: WNR) merely hit its prior low of $7.81 today.  But this stock was at $66.00 over the last year.

Jon C. Ogg
May 16, 2008

Posted on: May 16, 2008 – 2:15 pm in HI/LOW, , , , , , ,

The 52-Week Low Club (TWB)(FMD)(CHS)(PTRY)(GSAT)(VMED)

Tween Brands (TWB) Cuts Q1 outlooks. Sells down to $17.85 from 52-week high of $49.

First Marblehead  (FMD) Investment deal from Goldman Sachs looks weak. Down to $3.12 from 52-week high of $45.70.

Chico’s FAS (CHS) Weak same-store sales. Falls to $5.42 from 52-week high of $27.94.

Pantry (PTRY) Brokerage downgrade. Sells off to $11.20 from 52-week high of $48.96.

Globalstar (GSAT) Raising money through note offering. Down to $3.98 from 52-week high of $12.35.

Virgin Media (VMED) Large bond offering and downgrade. Slips to $12.37 from 52-week high of $30.

Douglas A. McIntyre

Posted on: April 10, 2008 – 3:02 pm in HI/LOW, , , , , ,

Globalstar, Waiting For Secondary Pricing (GSAT)

Globalstar Inc. (NASDAQ: GSAT) is apparently set to price its (up to) $135 million securities offering tonight. In a previous article, we discussed the terms of the offering, including the fact that underwriter Merrill Lynch is expected to sell anywhere from 15 to 20 million shares at a fixed price in addition to the offering. 

Tuesday, April 1st, before the filing, shares opened at $7.39 and jumped to $7.59 at close. Shares dropped to $7.05 on Wednesday. Today, Globalstar hit a new 52-week low of $4.85 earlier today on an 11% drop.  Shares have recovered to $5.20 early afternoon, although that is still down 5% today.  The prior 52-week range before today was $5.24 to $12.35.

You can join our open email distribution list to hear about buybacks, special financings, secondary offerings, M&A, and more previews for other special situations.

This was weak enough early this morning that it looked like it was at risk of not even coming.  There is still no assurance that this will price tonight, but that has been the expectation this week.  This was one of the more unique securities filings so what structurethat last filing ultimately takes and at what price is still up in theair.

Rachel Lopez
April 9, 2008

Posted on: April 9, 2008 – 1:18 pm in Satellite, Secondary Offering,

Globalstar $135 Million Funding & Share Lending Agreement (GSAT)

Globalstar, Inc. (NASDAQ: GSAT) intends to offer $135 million of Convertible Senior Notes due 2028, with a $15 million overallotment.  Merrill Lynch and Deutsche Bank Securities Inc. will act as joint Book-Running Managers for this offering.

The Notes will be convertible into Globalstar common stock, cash, or a combination, at Globalstar’s option.   The interest rate, conversion rate, conversion price and other terms of the Notes will be determined at the time of pricing of the offering.

Holders of the Notes may require Globalstar to repurchase the Notes if Globalstar is involved in certain types of corporate transactions or other events constituting a fundamental change (in other words, a put feature).

Globalstar also intends to enter into a share lending agreement with Merrill Lynch to lend shares of its common stock to the share borrower.  Globalstar will enter into an underwriting agreement with Merrill Lynch and the borrower so that the share borrower can sell the borrowed shares in an underwritten registered public offering and will use the short position resulting from the sale of such shares to facilitate the establishment of hedge positions by investors in the Notes.

Globalstar expects that approximately 15 to 20 million of the loaned shares will be initially offered in a fixed price offering, with the remaining shares subsequently offered and sold from time to time at prevailing market prices in various transactions.

Globalstar will not receive any of the proceeds from sales of borrowed shares, but it will receive a nominal lending fee from the share borrower.

For some reason, this sounds like loaning out your house when you plan to sell it.  This isn’t the only time that deals have been structured like this to accommodate collars and to generate lending income.  But it will sure be crucial to see what these terms end up being.

We frequently discuss restructurings, insider activity, activist investor trends, IPO’s, back door plays into IPO’s, SPAC’s, spin-offs, and more on our open email distribution list.

Jon C. Ogg
April 1, 2008

Jon Ogg produces the Special Situation Investing Newsletter and he can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: April 1, 2008 – 3:52 pm in Satellite, Secondary Offering,

Globalstar Offering Could More Than Double Its Size (GSAT)

Globalstar Inc. (NASDAQ: GSAT) filed for a shelf registration of mixed securities this morning that would allow it to sell up to $700 million.  The registration will allow it to sell debt securities, common and preferred stock, warrants and depositary shares.

As far as the use of proceeds, Globalstar noted that a part of the proceeds will be used to meet capital expenditures relating to it procuring and deploying second-generation satellite constellation and related ground facilities.

The potential size of the offering is rather large for this company.  Its shares have been cut in half from its 52-week highs appear to be down some 60% from its late-2006 IPO.  Its market cap is now about $565 million.  On last look, the company had $57.3 million in total liabilities.

When you see shelf filings of this size, these usually are a combination of debt and stock.  It’s hard for a company to get away with diluting current shareholders by more than half.  Either way, it looks like the fully diluted share count may soon be much larger than today.

Jon C. Ogg
March 19, 2008

Posted on: March 19, 2008 – 10:14 am in Satellite, Secondary Offering,

The 52-Week Low Club

King Pharmaceuticals (KG) Completes sale of a business unit. Down to $11.25 from 52-week high of $22.25.

Worldgate Communications (WGAT) Future of video phone company continues to concern. Falls to $.30 from 52-week high of $1.60.

Globalstar (GSAT) Satellite company shares fall to $6.12 from 52-week high of $17.68.

TLC Vision (TLCV) Eye care company shares fall to $2.94 from 52-week high of $6.10.

Douglas A. McIntyre

Posted on: October 3, 2007 – 2:56 pm in HI/LOW, , , ,

Globalstar’s Woes (GSAT)

Looking into recent IPO’s is usually more than interesting as far as financial investigations are concerned.  There are usually the year’s best performers among the names, but there are also some of the year’s most over-hyped piggies in stock-land. 

In our normal screen of 52-week and high and low stocks, we have noticed how the fairly recent IPO of Globalstar Inc. (NASDAQ:GSAT) keeps making the list of 52-week lows.  This one came public at the end of 2006 and if you review its chart you’d guess the company never issued one bit of positive news.

Globalstar is the satellite phone and data communications provider.  This is what is left of the "Old Globalstar" from the 1990’s.  They compete(d) against Iridium and both companies used to be public.  When Globalstar was in the pre-IPO stage the company stressed that this was not the predecessor company, although that doesn’t mean they didn’t assume the entire operations. 

The September short interest was 3.324 million shares and the company’s market cap is $485 million.  Shares are down 7% today at $6.50 on stronger than normal volume, but this is at least above the $6.12 intraday lows.  This one came public at with 7.5 million shares at $17.00, and that was 1 million shares more than originally proposed and in the middle of the $16 to $18 price range.  The prior post-IPO trading range before today was $7.05 to $17.68.

Globalstar isn’t expected to post a profit this year or next by the fewanalysts that cover the stock and this fell out of analyst favor earlythis year.  Iridium does claim to be profitable on their site.Calculating values on a company of this sort is quite difficult.  Thegood news is that satellites and the contracts that are in place forsatellites have value.  But that doesn’t ensure a win for holders ofthe common stock.

There is no way to know if this will keep heading lower or not, but companies that hit new lows frequently find it quite difficult to reverse a trend.

Jon C. Ogg
October 3, 2007

Jon Ogg produces the 24/7 Wall St. SPECIAL SITUATION INVESTING NEWSLETTER; he does not own securities in the companies he covers.

Posted on: October 3, 2007 – 1:51 pm in Satellite, , , , ,