Telesat wraps $550m of new financing
October 18, 2019
By Chris Forrester
Canada-based satellite operator Telesat raised $550 million in new debt but has used the extra funds to pay down $500 million of older debt some 5 years early (due to be repaid in November 2024)..
That old debt was costing Telesat 8.875 per cent in interest while the new borrowings are priced at 6.5 per cent, and now not due until October 2027.
The debt offering was originally designed to raise $500 million, and this extra $50 million is over and above the Telesat’s initial plan announced at the end of September.
Headquartered in Ottawa, Canada, with offices and facilities around the world, the company’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. Privately held, Telesat’s principal shareholders are Canada’s Public Sector Pension Investment Board and Loral Space & Communications.