New Issue: Telesat Canada prices $700 million five-year notes at par to yield 6%

By Paul A. Harris

Portland, Ore., April 30 - Telesat Canada and Telesat LLC priced a $700 million issue of five-year senior notes (B3/B-/) at par to yield 6% on Monday, according to a market source.

The yield printed on top of price talk.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. were the joint bookrunners.

The Ottawa-based fixed satellite services operator plans to use the proceeds to the fund tender of its 11% notes due 2015.

Issuers:	Telesat Canada and Telesat LLC
Amount:	$700 million
Maturity:	May 15, 2017
Securities:	Senior notes
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, TD Securities
Coupon:	6%
Price:	Par
Yield:	6%
Spread:	519 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:	April 30
Settlement date:	May 14
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S for life
Price talk:	6% area
Marketing:	Quick to market

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