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JPMorgan Chase Agents $2.63 Billion Credit Facility for Telestat Canada

November 21, 2016, 07:37 AM
Filed Under: Telecom

Telesat Canada issued U.S.$500.0 million in aggregate principal amount of 8.875% senior notes due 2024, which mature on November 17, 2024. Concurrently, Telesat announced its entry into a new amended and restated credit agreement. The new amended and restated credit agreement provides for term loan borrowings of $2,430.0 million and revolving credit borrowings of up to $200.0 million (together, the “Senior Credit Facilities”). The revolving credit facility is currently undrawn.

JPMorgan Chase Bank N.A. (“JP Morgan”) is acting as administrative agent and collateral agent with respect to the Senior Credit Facilities. Canadian Imperial Bank of Commerce (“CIBC”), BMO Capital Markets Corp. (“BMOCM”), RBC Capital Markets (“RBCCM”) and TD SECURITIES (“TDS”) acted as joint lead arrangers and bookrunners for the revolving facility. JP Morgan, Credit Suisse Securities (USA) LLC (“CSS”), Goldman Sachs Bank USA (“GS”) and Morgan Stanley Senior Funding, Inc. (“MSSF”) acted as co-arrangers for the revolving facility. JPMorgan, CSS, GS and MSSF acted as joint lead arrangers and bookrunners for the Term Loan B facility. CIBC, BMOCM, RBCCM and TD Securities (USA) LLC (“TD USA”) acted as co-arrangers for the Term Loan B facility. JP Morgan, CSS, GS and MSSF acted as revolving facility documentation agents. CIBC, BMOCM, RBCCM and TD USA acted as Term Loan B facility documentation agents.

Telesat used a portion of the net proceeds from the Notes Offering and the Senior Credit Facilities, together with cash on hand, to (i) redeem its US$900.0 million aggregate principal amount outstanding of 6.0% senior notes due May 15, 2017, (ii) repay all borrowings outstanding under its existing senior credit facilities and (iii) pay related fees and expenses. Telesat intends to use the balance to fund its previously announced cash distribution to its shareholders, if completed, and for general corporate purposes.

The Senior Notes were offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and, outside the United States, only to non-U.S. investors pursuant to Regulation S under the Securities Act. The Senior Notes were not, and will not be, registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act or other applicable securities laws.

Telesat is a leading global satellite operator, providing reliable and secure satellite-delivered communications solutions worldwide to broadcast, telecom, corporate and government customers.

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