Telesat Canada increases term loan B size to $2.43 billion

By Sara Rosenberg

New York, Nov. 8 – Telesat Canada upsized its seven-year term loan B to $2.43 billion from $2.18 billion and downsized its notes offering to $500 million from $750 million, according to market sources.

The term loan B is talked at Libor plus 375 basis points to 400 bps with a 0.75% Libor floor and an original issue discount of 99, and includes 101 soft call protection for six months.

The company’s now $2.63 billion credit facility, up from $2.38 billion, also includes a $200 million five-year revolver.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds from the credit facility and bonds will be used to redeem notes, repay bank debt and fund a cash dividend to shareholders.

Telesat is an Ottawa-based fixed satellite services operator.

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