Globalstar pops 8% as it discloses $252M loan from Apple for satellite service
Globalstar shares rose more than 8% on Tuesday after the satellite telecommunications company disclosed Apple has provided it with additional financial assistance.
In an 8-K filing, Globalstar said its partner – publicly known to be Apple – had given the company $252M in the form of a prepayment to be used for satellite manufacturing costs, as well as launch and other costs associated with the constellation used for Apple’s Emergency SOS satellite feature.
Globalstar said the $252M from Apple replaces the need to find third-party financing.
Under terms of the agreement, Gloablstar will be paid back in 16 installments, starting no later than the third quarter of 2025.
Apple announced the new feature, which lets users who are out of range from cell towers, access the satellites by pointing the phone at a sky and connecting to one of Globalstar’s satellites, in September.
In November, Apple said it would spend $450M on U.S. infrastructure as the tech giant gets its Emergency SOS texting feature for the iPhone 14 off the ground, with the “majority” of the money going towards Globalstar.
Apple’s satellite communications feature was initially available in just the U.S. and Canada, but it was expanded to much of western Europe in December. Seeking Alpha
You must be logged in to post a comment Login