Mobile satellite services provider Globalstar, already facing an extended decline in revenue because of the degradation of its two-way voice service following a satellite power-amplifier problem, is confronting sharply higher bills for its second-generation constellation because of the decline of the U.S. dollar relative to the euro. The constellation is being built by a European manufacturer, and the contract value is sensitive to exchange rates. Milpitas, Calif.-based Globalstar on March 19 filed a registration with the U.S. Securities and Exchange Commission (SEC) for $700 million in new stock or bond offerings, with the timing and pricing to depend on market conditions. The funds will be used to help pay for Globalstar's ongoing operating costs, and for the second-generation constellation, which the company said will cost $1.25 billion including launches.
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