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>Globalstar CEO Discusses Q1 2019 Results - Earnings Call Transcript with analyst Q&A and 10-K Annual Report<
So after nearly 10 yeas operational life has passed on most of their second generation satellites that have a 15 year life expectancy.. . Globalstar still has over $500MM in debt and is only generating about a million a quarter in positive cash flow.
Exactly how do they expect to pay down the debt and finance replacement satellites in 3 or 4 years?
I mean.. Look at the metrics..
Duplex subscribers DOWN SPOT subscribers DOWN The only bright spot is simplex which is very low revenue adds.
Reads like a train wreck to me. But the stock is UP so it is better than expected? (Cant even think 'smart' money managers would bid up the share price to the 0.69 refinancing offer, Thermo has it all locked in, no 'commoner' will benefit here.) What a long drawn out story.
"reduce future amortization requirements and secure a strategic partner to provide approximately one half of the second lien facility. This partner brings significant experience to the relationship as well as collaboration opportunities with respect to various satellite and spectrum initiatives."
"Collaboration opportunities" with respect to various satellite and spectrum initiatives.
Sounds like Iridium to me.
Iridium needs additional L Band below 1618Mhz Globalstar needs a new constellation and 3G ground network. Globalstar needs reliable duplex operations and new phones. Globalstar was a large Iridium customer during 2007-2012 when Globalstar could not provide reliable duplex operations with their own phones.
Such a collaboration takes a whole load of future uncertainty off the table for Globalstar. New Constellation New User Terminals New Ground Network
Iridium could care a less what Globalstar does in the S Band with Spectrum Monetization. Globalstar basically raises the white flag on building and running a duplex MSS business and simply becomes a Distributor for Iridium under the Globalstar name.