Other tidbits from the prospectus:
In addition to the 7M shares announced yesterday, 1.05M shares are available for purchase by the underwriters.
"Globalstar spent approximately $12 million on brand-building advertising in
1999 and plans to spend an additional $55 million in 2000, of which $20 million
will come from service providers as contributions to a cooperative advertising
program." (page 18)
". At year-end 1999,
36,000 mobile phones and 4,000 fixed phones had been shipped and are in various
sales channels awaiting customer orders, activation and final delivery. " (page 21)
" Without giving effect to this offering, as of December 31, 1999, Globalstar
had cash on hand and available bank borrowing capacity of approximately $524
million, including an undrawn credit facility of $250 million expiring June 30,
2000. Globalstar's management estimates that its cash operating expenses,
interest and preferred dividends for 2000 will be $125 million per quarter
(approximately half of which is for cash interest and preferred dividends). In
addition, $200 million will be required for capital expenditures and repayment
of vendor financing. Globalstar's management believes that its current financial
resources, together with anticipated cash from operations and an anticipated
extension of the $250 million credit facility, will be sufficient for such
purposes.
Accordingly, Globalstar intends to use the offering proceeds for other
general corporate purposes, which may include:
- to accelerate beyond planned efforts for the roll-out of Globalstar
service through increased support for service provider marketing
activities and the funding of promotional discounts;
- development of new service features; and
- possible repayment of debt." (Page 12)
In addition, prospectus formally notes that G* has agreements with over 220 local service providers with an existing base of more than 100M cellular customers. We've seen this before, but not in an SEC-filing, to my knowledge. |
