Published on 10/24/2012 in the Prospect News Canadian Bonds Daily and Prospect News High Yield Daily.
New Issue: Telesat prices $200 million tap of 6% notes due 2017 at 103.5 to yield 4.911%
By Paul A. Harris
Portland, Ore., Oct. 24 - Telesat Canada and Telesat LLC priced a $200 million add-on to their 6% senior notes due May 15, 2017 (existing ratings B3/B-/) at 103.5 to yield 4.911% on Wednesday, according to a market source.
The reoffer price came at the rich end of the 103 to 103.5 price talk.
J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC were the joint bookrunners for the quick-to-market deal.
Proceeds will be used to refinance PSP notes and Loral notes (shareholder notes) and for general corporate purposes.
Telesat is an Ottawa-based fixed satellite services provider.
| Issuer: | Telesat Canada and Telesat LLC
|
| Face amount: | $200 million
|
| Proceeds: | $207 million
|
| Maturity: | May 15, 2017
|
| Security description: | Add-on to 6% senior notes due May 15, 2017
|
| Bookrunners: | J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co.
|
| Co-managers: | BMO Capital Markets, CIBC World Markets, ING, RBC Capital Markets LLC, TD Securities, UBS Investment Bank
|
| Coupon: | 6%
|
| Price: | 103.5
|
| Yield to worst: | 4.911%
|
| Spread: | 439 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until May 15, 2014, then callable at 103, 101.5, par on and after May 15, 2016
|
| Equity clawback: | 40% at 106 until May 15, 2014
|
| Trade date: | Oct. 24
|
| Settlement date: | Oct. 29 with accrued interest
|
| Existing ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 103 to 103.5
|
| Marketing: | Quick to market
|
| Original issue: | $700 million issue priced at par on April 30, 2012
|
| Total issue size: | $900 million
|
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