New Issue: Telesat Canada sells $550 million eight-year notes at par to yield 6½%

By Paul A. Harris

Portland, Ore., Sept. 27 – Telesat Canada and Telesat LLC, subsidiaries of Ottawa-based Telesat Holdings Inc., priced a $550 million issue of eight-year senior notes (B3/B) at par to yield 6½% on Friday, according to market sources.

The yield printed at the tight end of the 6½% to 6¾% yield talk and tighter than initial guidance in the 7% area.

Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were Credit Suisse Securities, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC.

The satellite telecommunications services provider plans to use the proceeds, along with cash on hand, to redeem its 8 7/8% notes due 2024 in full.

Issuer:	Telesat Canada and Telesat LLC
Amount:	$550 million
Maturity:	Oct. 15, 2027
Securities:	Senior notes
Left bookrunner:	Goldman Sachs & Co. LLC
Joint bookrunners:	Credit Suisse Securities, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
Co-managers:	BMO Capital Markets Corp., CIBC, ING, RBC Capital Markets, Scotia, TD Securities
Coupon:	6½%
Price:	Par
Yield:	6½%
Spread:	484 bps
Call protection:	Three years
Trade date:	Sept. 27
Settlement date:	Oct. 11
Ratings:	Moody's: B3
	S&P: B
Distribution:	Rule 144A and Regulation S for life
Price talk:	6½% to 6¾%
Marketing:	Roadshow

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