Globalstar, a Covington-based satellite phone service firm, expects to raise $121.4 million before expenses from the sale of 73.4 million shares of stock, with most of the money going to lenders.

The company will deposit 80 percent of the net proceeds in a restricted account for the company's lenders, a requirement of Globalstar's June 2017 credit agreement amendment. Globalstar expects its lenders will draw from the account to pay principal and interest due in December and June 2018.

Globalstar plans to use the remainder of the proceeds for general corporate purposes.