By Paul A. Harris
Portland, Ore., April 13 – Telesat Canada and Telesat LLC priced a $500 million issue of 5 5/8% senior secured notes due Dec. 6, 2026 (B1/BB-) at par to yield 5.623% in a Tuesday drive-by, according to market sources.
The yield printed slightly inside of yield talk in the 5¾% area. Initial guidance was 6%.
The deal was heard to have been playing to $1.8 billion of demand around 1:15 p.m. ET on Tuesday, a trader said.
Goldman Sachs was the left bookrunner. Joint bookrunners were JPMorgan and BMO.
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.
| Issuers: | Telesat Canada & Telesat LLC
|
| Amount: | $500 million
|
| Maturity: | Dec. 6, 2026
|
| Securities: | Senior secured notes
|
| Left bookrunner: | Goldman Sachs
|
| Joint bookrunners: | JPMorgan and BMO
|
| Coupon: | 5 5/8%
|
| Price: | Par
|
| Yield: | 5.623%
|
| Spread: | 461 bps
|
| First call: | Dec. 6, 2023 at 102.813
|
| Trade date: | April 13
|
| Settlement date: | April 27
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5¾% area
|
| Marketing: | Drive-by
|
|
|
© 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.
