By Paul A. Harris
Portland, Ore., Nov. 9 – Telesat Canada priced a downsized $500 million issue of eight-year senior notes (B3/B) at par to yield 8 7/8% on Wednesday, according to market sources.
The deal size was decreased from $750 million, with proceeds shifted to the term loan, which was upsized to $2.43 billion from $2.18 billion.
The yield printed in the middle of the 8¾% to 9% yield talk. That official talk came wider than earlier guidance of 8½% to 8¾%, the source added.
The bond offer was playing to $800 million of orders as of Wednesday morning, a buyside source said.
J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Morgan Stanley & Co. LLC were the joint bookrunners.
The Ottawa-based satellite communications company plans to use the proceeds, along with proceeds from the new term loan and cash on hand, to redeem its $900 million of outstanding 6% senior notes due May 15, 2017, to repay all debt outstanding under its existing credit facilities and to fund the previously announced cash dividend to shareholders.
The deal came via Telesat Canada, a wholly owned subsidiary of Telesat Holdings Inc., and co-issuer Telesat LLC.
| Issuers: | Telesat Canada and Telesat LLC
|
| Amount: | $500 million, decreased from $750 million
|
| Maturity: | Nov. 15, 2024
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Morgan Stanley & Co. LLC
|
| Co-managers: | BMO Capital Markets, CIBC Capital Markets, RBC Capital Markets, TD Securities
|
| Coupon: | 8 7/8%
|
| Price: | Par
|
| Yield: | 8 7/8%
|
| Spread: | 696 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Nov. 15, 2019, then callable at 106.656
|
| Equity clawback: | 40% at 108.875 until Nov. 15, 2019
|
| Trade date: | Nov. 9
|
| Settlement date: | Nov. 17
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¾% to 9%
|
| Marketing: | Roadshow
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
