Published on 6/24/2008 in the Prospect News High Yield Daily.
New Issues: Telesat Canada prices $910 million high-yield notes in two tranches
By Paul A. Harris
St. Louis, June 24 - Telesat Canada and Telesat LLC priced $910 million of high-yield notes (Caa1/B-) in two tranches on Tuesday, according to an informed source.
A $692.825 million tranche of senior notes due Nov. 1, 2015 priced at par to yield 11%.
Meanwhile a $217.175 million tranche of senior subordinated notes due Nov. 1, 2017 priced at par to yield 12½%.
There was no official price talk.
Morgan Stanley, UBS Investment Bank and J.P. Morgan Securities Inc. were joint bookrunners for the deal that was transacted according to Rule 144A with registration rights and Regulation S. Scotia Capital and Jefferies & Co. were the co-managers.
Proceeds will be used to refinance the bridge loan related to the acquisition of Telesat by a joint venture company formed by Loral Space & Communications Inc. and the Public Sector Pension Investment Board.
The issuing entity is an Ottawa-based telecommunications satellite operator.
| Issuers: | Telesat Canada and Telesat LLC
|
| Amount: | $910 million
|
| Bookrunners: | Morgan Stanley, UBS Investment Bank, J.P. Morgan Securities Inc.
|
| Co-managers: | Scotia Capital, Jefferies & Co.
|
| Trade date: | June 24
|
| Settlement date: | June 30
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
|
|
| Senior notes
|
| Amount: | $692.825 million
|
| Maturity: | Nov. 1, 2015
|
| Coupon: | 11%
|
| Price: | Par
|
| Yield: | 11%
|
| Spread: | 727 bps
|
| Call features: | Callable on May 1, 2012 at 105.50, 102.75, par on and after May 1, 2014
|
| Equity clawback: | Until May 1, 2011 for 35% at 111.0
|
| Price talk: | None
|
|
|
| Senior subordinated notes
|
| Amount: | $217.175 million
|
| Maturity: | Nov. 1, 2017
|
| Coupon: | 12½%
|
| Price: | Par
|
| Yield: | 12½%
|
| Spread: | 843 bps
|
| Call features: | Callable on May 1, 2014 at 106.25, 103.125, 101.563, par on and after May 1, 2017
|
| Equity clawback: | Until May 1, 2011 for 35% at 112.5
|
| Price talk: | None
|
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