Canadian satellite operator Telesat has completed a private placement of US$200m worth of 6% senior notes due 2017.
The notes, which priced 103.5% to yield 5.79%, are an add-on to the US$700m of 6% unsubordinated unsecured senior notes that the company…
Canadian satellite operator Telesat has completed a private placement of US$200m worth of 6% senior notes due 2017.
The notes, which priced 103.5% to yield 5.79%, are an add-on to the US$700m of 6% unsubordinated unsecured senior notes that the company secured back in May 2012. Credit Suisse, JP Morgan and Morgan Stanley were the lead bookrunners on that offering.
Telesat stated that it intends to use the net proceeds from the add-on offering to fund the repayment of certain indebtedness owed to its principal shareholders, Loral Space & Communications and Public Sector Pension Investment Board (PSP). Any remaining proceeds will be used for general corporate purposes.
The offering and the pricing again highlight institutional investor appetite for dollar-denominated bond issuances from fixed satellite service operators and comes a month after Intelsat completed a US$640m 10-year 6.625% senior bond offering.
Telesat also released its preliminary expected results for Q3 2012, announcing a year-on-year increase in quarterly revenue from C$200m to C$220m and adjusted EBITDA from C$154m to C$175m, giving it a margin of 79.5%.
However, Telesat’s margin has fallen slightly from C$5.4bn at the end of the second quarter of 2012 to C$5.2bn.
