Ottawa-based satellite operator Telesat is to raise $500 million (US) of new debt, in Senior Notes due for repayment in 2027.
The intention is to use the cash to pay off similar borrowings (but with an interest rate of 8.875 per cent) and with the new borrowing at lower rates.
Telesat, in a statement, says it intends to use the net proceeds from the proposed offering of Senior Notes, together with cash on hand, to redeem its $500 million aggregate principal amount outstanding of 8.875 per cent senior notes due November 17th 2024 and pay related fees and expenses.
Telesat’s fleet consists of 16 GEO satellites, the Canadian payload on ViaSat-1 and one Phase 1 LEO satellite which is the start of Telesat’s planned advanced global LEO satellite constellation that will offer ultra-low latency, extremely high throughput, affordable broadband services. Telesat is also a leading technical consultant providing high value expertise and support to satellite operators, insurers and other industry participants on a global basis. Privately held, Telesat’s principal shareholders are Canada’s Public Sector Pension Investment Board and Loral Space & Communications.
Telesat is also a member of the C-Band Alliance.