Business · Companies · 6 hrs ago
Telesat weighs options as US$1.71-billion debt payment approaches
Ottawa-based Telesat is weighing options as it faces a major debt payment.
About US$1.71-billion is due on Dec.
6, with another US$438-million maturing in 2027.
The debt is tied to Telesat’s older geostationary satellite business, while the company is also building its Lightspeed low-Earth-orbit network.
CEO Dan Goldberg said Telesat is speaking with creditors and assessing alternatives, but gave no details.
Creditors have proposed a $1.7-billion share offering and a $1.5-billion loan as part of a plan to restructure the debt.
Telesat reported a $157-million quarterly loss and lower revenue, partly because broadcast contracts and customer capacity declined.
The company says it aims to address its obligations before they come due, but its ability to complete a solution is uncertain.
Telesat reported lower third-quarter revenue and a net loss as it faces large debt repayments.
Revenue was US$80.6-million, down from US$101.1-million in the same quarter last year.
The company reported a net loss of US$157.2-million, compared with US$121.1-million a year earlier.
About US$1.71-billion of debt is due Dec. 6, and further debt matures in 2027.
Telesat says it is discussing options with creditors but gave no assurance that it can meet its obligations.
- Who
- Ottawa-based satellite operator Telesat and its creditors.
- What
- Telesat reported lower third-quarter revenue and a net loss, and warned that repayment of its debt depends on factors outside its control.
- When
- The results were reported on Oct. 29, 2026. About US$1.71-billion in debt is due Dec. 6.
- Where
- Telesat is based in Ottawa, Canada.
- Why
- Revenue fell largely because a broadcast contract was not renewed and a broadcast customer reduced contracted capacity; Telesat also reduced service to a North American broadband customer and removed some satellites from service.
Telesat
Telesat's lenders
Debt restructuring
Telesat
Telesat says it is engaging in good faith with creditors and evaluating alternatives to reach a fair outcome for stakeholders.
Telesat's lenders
The lenders proposed a recapitalization plan involving a $1.7-billion equity-rights offering and a $1.5-billion loan.
Dispute over satellite assets
Telesat
Telesat has said lenders' allegations are without merit.
Telesat's lenders
Lenders alleged that Telesat breached a credit agreement by moving part of its low-Earth-orbit satellite business beyond their reach.
Lenders filed lawsuits alleging that Telesat breached a credit agreement by moving part of its low-Earth-orbit satellite business beyond their reach.
Telesat announced a $2.3-billion contract to deliver Arctic connectivity to the Canadian Armed Forces.
Telesat's lenders presented the company with a proposal, according to the Globe and Mail.
Telesat reported its third-quarter results and said it was evaluating alternatives ahead of debt repayments.
- Third-quarter revenue
- US$80.6-million, down from US$101.1-million a year earlier
- Third-quarter net loss
- US$157.2-million, compared with US$121.1-million a year earlier
- Debt due Dec. 6
- Approximately US$1.71-billion
- Further debt
- US$438-million matures in 2027
- Lenders' proposal
- $1.7-billion equity-rights offering and $1.5-billion loan
2 sources
What people are saying
Our advisers continue to seek good-faith engagement with the Telesat geo debt holders, and we’re evaluating other alternatives as well, with the goal of reaching an outcome that’s fair to all stakeholders
there can be no assurance that these initiatives will be completed successfully