Canada-based satellite operator Telesat is restructuring its long-term debt and borrowings. It is offering $750 million of Senior Notes due for redemption in 2024. The operator is also restructuring its existing revolving credit lines and will borrow up to $2.38 billion in the form of long-term and shorter-term finance.

The proceeds will be use do pay down existing debt of $900 million of 6 per cent debt due May 2017, and repay all other outstanding borrowings. Any surplus cash left over, after expense, will be distributed to shareholders.

Telesat also unveiled its Q3 and 9-months trading statement, saying that for Q3 (to September 30th) it had revenues of $224 million, a decrease of approximately 7 per cent ($18 million) compared to the same period in 2015. During the quarter, the US dollar was approximately 1 per cent stronger than it was during the third quarter of 2015 and, as a result, there was a favourable impact on the conversion of US dollar denominated revenues (into Canadian dollars). When adjusted for foreign exchange rate changes, revenue declined by 8 per cent (a decrease of $19 million) compared to the same period in 2015.

For the 9-month revenue was $691 million, a decrease of 1 per cent ($7 million) compared to the same period in 2015. During the first three quarters of 2016, the US dollar was 6 per cent stronger than it was during the first three quarters of 2015. When adjusted for changes in foreign exchange rates, revenues declined 3 per cent ($22 million) compared to the same period in 2015. The largest contributor to the reduction in revenue relative to the same period last year was lower revenue from the energy and resource sector.

Categories: Articles, Business, DTH/Satellite