Telesat begins tender offer, consent solicitation for 11% notes

By Angela McDaniels

Tacoma, Wash., April 30 - Telesat Holdings Inc. subsidiary Telesat Canada began a tender offer and consent solicitation for its $692,825,000 outstanding principal amount of 11% senior notes due 2015, according to a company news release.

The company is offering $1,060 per $1,000 principal amount of notes. This includes a $30 consent payment for each note tendered by 5 p.m. ET on May 11, the consent date.

Holders will also receive accrued interest up to but excluding the payment date.

Telesat Canada is soliciting consents to proposed amendments to the indenture governing the notes that would eliminate substantially all of the restrictive covenants, eliminate or modify some events of default and eliminate or modify some other provisions.

In order for the proposed amendments to be effective, consents are needed from the holders of at least a majority of the outstanding notes.

Holders who tender their notes must consent to the proposed amendments, and holders may not deliver consents without tendering notes.

The tender offer will expire at midnight ET at the end of May 25.

The company may accept notes tendered by the consent date for early settlement. The early payment date would be May 14. The final payment date is expected to be May 29.

The consummation of the tender offer and the consent solicitation is conditioned on, among other things, the receipt of the necessary consents and the issuance of enough new debt financing to fund the tender offer or the redemption of the notes in the event that any notes are not purchased under the tender offer.

The dealer managers are J.P. Morgan Securities LLC (800 245-8812 or 212 270-1200), Credit Suisse (800 820-1653 or 212 325-2476) and Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057). The information agent is i-Deal LLC (212 849-5000 for brokers and banks, others call 888 593-9546). The depositary is Continental Stock Transfer & Trust Co. (212 509-4000 ext. 536).

Telesat is a fixed satellite services operator based in Ottawa.

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