Simpson Thacher recently represented Telesat Canada in connection with a refinancing of its existing indebtedness, consisting of both an amendment of its senior credit facilities (providing for term loan borrowings of $2.43 billion and revolving credit borrowings of up to $200 million) and a $500 million Rule 144A/Regulation S offering of 8.875% Senior Notes due 2024.
Telesat used a portion of the net proceeds from the refinancing, together with cash on hand, to redeem all $900 million of its outstanding senior notes, to repay all borrowings under its existing senior credit facilities and to pay related fees and expenses. Telesat intends to use the remaining net proceeds to fund a cash distribution to its shareholders, if completed, and for general corporate purposes. The refinancing transactions closed on November 17, 2016.
Telesat is a leading global satellite operator, providing reliable and secure satellite-delivered communications solutions worldwide to broadcast, telecom, corporate and government customers.
The Simpson Thacher team included Joseph Kaufman, Lia Toback, Brian Rosenzweig, Erica Lee, Jessie Chen and Todd Noelle (Capital Markets); Brian Steinhardt, Matthew Farrell, Patrick Vergara and Lauren Finkelstein (Credit); John Torrenti (Tax); Krista McManus and Dennis Loiacono (Real Estate); Larry Moss and Alisa Tschorke (Executive Compensation & Employee Benefits); Linda Nyberg (Intellectual Property); and Adeeb Fadil and Noreen Lavan (Environmental). Summer Associates Nina Bakhtina and Forrest Osgood provided valuable assistance.