09:19 AM EDT, 11/01/2024 (MT Newswires) -- Globalstar ( GSAT ) said Friday it will provide expanded services to Apple ( AAPL ) over a new mobile satellite services network through the companies' updated services agreements.

The services include a new satellite constellation, expanded ground infrastructure and increased worldwide mobile satellite services licensing, Globalstar ( GSAT ) said in a filing with the US Securities and Exchange Commission.

The company said as part of the deal, Apple ( AAPL ) will make cash prepayments to Globalstar ( GSAT ) of up to $1.1 billion and an amount necessary for Globalstar ( GSAT ) to retire its outstanding 13% senior notes due 2029.

Globalstar ( GSAT ) added that Apple ( AAPL ) agreed to purchase 400,000 class B units in Globalstar SPE, representing a 20% stake.

The company said $400 million will be paid for the units in Globalstar SPE, which will own the extended mobile satellite services network, upon the closing, currently expected to happen around Nov. 5.

Globalstar ( GSAT ) said it will retain all terrestrial, mobile satellite services and other revenue and will continue to allocate 85% of its network capacity to Apple ( AAPL ).

Globalstar ( GSAT ) shares soared 35% and Apple ( AAPL ) shares fell 1.8% in recent Friday premarket activity.

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