Canada-based satellite operator Telesat has reduced the size of its refinancing package, and trimmed $250 million (€232.7m) from its planned $750 million of new senior notes. As matching compensation it is upping an already announced long-term loan by $250 million to the adjusted $2.43 billion.
Telesat has not given reasons for the adjustments which could be because US government bond prices tumbled on the Donald Trump news.
This is the first batch of fresh cash or restructuring of existing debt for four years by Telesat. The operator is owned by two major shareholders, Space Systems/Loral and Canada’s Public Sector Pension Investment Board. Both will likely now enjoy special cash dividends.
Telesat priced its $500 million bonds at 8.875 per cent, and are due for redemption in 2024.
Telesat says it intends to use the net proceeds from the proposed offering of Senior Notes, together with the proceeds from term loan borrowings under the new credit facilities and cash on hand, to (i) redeem its $900 million aggregate principal amount outstanding of 6 per cent senior notes due May 15th 2017, (ii) repay all borrowings outstanding under its existing credit facilities, (iii) pay related fees and expenses and (iv) if completed, fund its previously announced cash distribution to its shareholders.