Telesat Canada announces proposed notes offering


Telesat Canada, a wholly-owned subsidiary of Telesat Holdings Inc., today announced that, together with Telesat LLC, as co-issuer, it intends to issue US$750 million of senior notes due 2024.

In connection with the proposed offering, Telesat intends to enter into a new credit facility that is expected to provide for term loan borrowings of US$2,180 million and revolving credit borrowings of up to US$200 million. Telesat intends to use the net proceeds from the proposed offering of Senior Notes, together with the proceeds from term loan borrowings under the new credit facilities and cash on hand, to (i) redeem its US$900 million aggregate principal amount outstanding of 6.0% senior notes due May 15, 2017, (ii) repay all borrowings outstanding under its existing credit facilities, (iii) pay related fees and expenses and (iv) if completed, fund its previously announced cash distribution to its shareholders.

The Senior Notes are being offered only to qualified institutional buyers in reliance on Rule

144A under the Securities Act of 1933, as amended, and, outside the United States, only to non-U.S. investors pursuant to Regulation S under the Securities Act. The Senior 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 Notes will be made only by means of a private offering memorandum. No assurance can be made that the Senior Notes will be issued.

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