Moody's rates Telesat notes B3

Moody's Investors Service said it rated Telesat Canada's proposed $700 million senior unsecured notes issue B3.

The company's corporate family rating and probability of default rating are B1, senior secured bank credit facility is rated Ba3, senior subordinated notes are rated B3 and speculative grade liquidity rating is SGL-3.

The outlook is stable.

Moody's said Telesat launched a new notes issue to fund a concurrently announced tender offer. The proposed transaction is ratings neutral as there is no change to total debt.

Accordingly, because the new notes are the same seniority/class as the notes they replace, they are rated at the same B3 level as the notes they replace, Moody's said.

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