Telesat Canada Announces Proposed Amendment to Existing Credit Agreement and Proposed Secured Notes Offering

Telesat Canada (“Telesat”) today announced that it entered into discussions on November 15, 2019 to amend its existing credit agreement, dated March 28, 2012, among Telesat and Telesat LLC, as borrowers (the “Borrowers”), the guarantors party thereto, the lenders party thereto from time to time, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent for the secured parties and the other financial institutions party thereto (such agreement, as amended prior to the date hereof, the “Existing Credit Agreement”).  The proposed amendment would extend the maturity of the Term Loan B facility and the Revolving facility under the Existing Credit Agreement, as well as make certain other amendments.  As of September 30, 2019, the Borrowers had approximately US$2.308 billion outstanding under the Term Loan B facility and up to US$200 million available under the Revolving facility.  In connection with the amendment, Telesat expects to repay a portion of the Term Loan B borrowings.

Telesat today also announced that, together with Telesat LLC, as co-issuer, it intends to issue US$500 million of senior secured notes due 2027 (the “Senior Secured Notes”) secured by a first priority lien on the collateral that secures the Existing Credit Agreement.  Telesat intends to use the net proceeds from the proposed offering of Senior Secured Notes to repay a portion of the Term Loan B borrowings outstanding under the Existing Credit Agreement and pay related fees and expenses.  The Senior Secured Notes are being 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 Secured Notes 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.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful.  Any offers of the Senior Secured Notes will be made only by means of a private offering memorandum.  No assurance can be made that the Senior Secured Notes will be issued.

About Telesat

Telesat is a leading global satellite operator, providing reliable and secure satellite-delivered communications solutions worldwide to broadcast, telecom, corporate and government customers. Headquartered in Ottawa, Canada, with offices and facilities around the world, the company’s state-of-the-art fleet consists of 16 GEO satellites, the Canadian payload on ViaSat-1 and one Phase 1 LEO satellite which is the start of Telesat’s planned advanced global LEO satellite constellation that will offer ultra-low latency, extremely high throughput, affordable broadband services. Telesat is also a leading technical consultant providing high value expertise and support to satellite operators, insurers and other industry participants on a global basis. Privately held, Telesat’s principal shareholders are Canada's Public Sector Pension Investment Board and Loral Space & Communications Inc. (NASDAQ: LORL). www.telesat.com

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