By Paul A. Harris
Portland, Ore., Nov. 22 – Telesat Canada, along with Telesat LLC, priced a downsized $400 million issue of 7.5-year senior secured notes (Ba3/BB-) at par to yield 4 7/8% on Friday, according to market sources.
The yield printed in the middle of the 4¾% to 5% yield talk. Initial guidance was in the 5% area.
J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC were the joint bookrunners.
The Ottawa-based satellite communications company plans to use the proceeds to pay down its term loan B.
| Issuer: | Telesat Canada and Telesat LLC
|
| Amount: | $400 million, decreased from $500 million
|
| Maturity: | June 1, 2027
|
| Securities: | Senior secured notes
|
| Bookrunners: | J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | 318 bps
|
| Call protection: | Three years
|
| Trade date: | Nov. 22
|
| Settlement date: | Dec. 6
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 4¾% to 5%
|
| Marketing: | Roadshow
|
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