Telesat gives no detail on refinancing C$2.4 billion of GEO debt due 6 December

Telesat CEO Dan Goldberg told analysts on the company's Q3 earnings call that Telesat was "pretty constrained" in what it could say about refinancing its legacy GEO debt. C$2.4 billion ($1.7 billion) of that debt falls due on 6 December, about five weeks away. Telesat's quarterly filing the same morning again warned of "substantial doubt" that its GEO business can stay afloat.

Telesat GEO operates 12 aging geostationary satellites and brings in nearly all of the company's revenue. It owes about C$3 billion ($2.1 billion) in debt maturing through October 2027 and holds C$286.7 million ($204.9 million) in cash.

A lender group including Silver Point Capital, GoldenTree Asset Management and Sound Point Capital Management has made at least two rescue offers. The second, delivered on 14 October, would repay lenders in full plus accrued interest through C$1.7 billion ($1.2 billion) in new equity and a C$1.5 billion ($1 billion) loan. Existing shareholders would be invited to buy the new shares at C$31.50 ($22.52), about half the stock's price at the time.

A source told The Globe and Mail that Telesat has acknowledged both offers but has not negotiated on their terms. The company says it is seeking "good-faith engagement" with debtholders.

Sourcepayloadspace.com