Telesat Canada to price $500 million eight-year notes on Friday; initial talk 7% area

By Paul A. Harris

Portland, Ore., Sept. 26 – Telesat Canada and Telesat LLC, subsidiaries of Ottawa-based Telesat Holdings Inc., plan to market a $500 million offering of eight-year senior notes (existing ratings B3/B) on Thursday and Friday and then price the deal later on Friday, according to market sources.

Initial guidance has the bonds coming to yield in the 7% area.

An investor conference call was set to take place late Thursday morning.

Goldman Sachs & Co. LLC is the left bookrunner. Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. Inc. are the joint bookrunners.

BMO Securities, CIBC World Markets, ING, RBC Capital Markets LLC, Scotia Capital and TD Securities are the co-managers.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon.

The satellite telecommunications services provider plans to use the proceeds, along with cash on hand, to redeem its 8 7/8% notes due 2024 in full.

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