Why Globalstar Stock Just Popped 9%
Shares of satellite communications company Globalstar (NYSEMKT: GSAT) jumped 9.5% as of 9:45 a.m. EDT Thursday -- but don't get too excited. It seems this pop was inspired by kind of a nonevent.
This morning, Globalstar filed an 8-K update with the Securities and Exchange Commission, describing the receipt of "an additional advance payment of $37.5 million from a customer on substantially the same terms as the advance payment described in the Company's Current Report on Form 8-K filed on June 9, 2021. Globalstar will use the proceeds from the advance payment to repay a portion of the amount outstanding under its first lien credit facility."
Backtracking this vague explanation through multiple filings, we find first that the June 9 payment was also for $37.5 million, and related to "the Terms Agreement described in its Annual Report on Form 10-K for the year ended December 31, 2020."
Source Fool.com
