Telesat driving by with $500 million secured notes due December 2026; initial talk 6%

By Paul A. Harris

Portland, Ore., April 13 – Telesat LLC plans to price a $500 million offering of senior secured notes due December 2026 (B1/BB-) in a Tuesday drive-by trailing a conference call with investors, according to market sources.

Initial guidance is 6%, a trader said.

Goldman Sachs is the left bookrunner. JPMorgan and BMO are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable after 2.5 years at par plus 50% of the coupon.

The Ottawa-based satellite communications company plans to use the proceeds to fund additional investment into one or more unrestricted subsidiaries for the development of Telesat Lightspeed, its advanced low earth orbit satellite network. Should those funding needs be less than anticipated, any remaining proceeds will be used for general corporate purposes.

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