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Co-founder and Editor, The Tech Capital
November 23, 2021 | 1:00 AM GMT
Canadian satellite communications company Telesat (NASDAQ: TSAT; TSX: TSAT) has gone public on the Nasdaq Global Select Market (NASDAQ) and the Toronto Stock Exchange (TSX).
The public markets debut followed the closing of Ottawa-based Telesat’s transaction with Loral Space & Communications Inc. (Loral) and Public Sector Pension Investment Board (PSP Investments) in which Loral’s stockholders and Telesat Canada’s other equity holders have exchanged their interests for equity in Telesat’s new public holding structure.
Telesat did not issue new equity to raise additional cash financing as part of the transaction.
Telesat Canada and Loral have become subsidiaries of Telesat Corporation, the Canadian-controlled and incorporated public holding company formed in connection with the transaction.
Dan Goldberg, Telesat’s president and chief executive officer, said: “By rationalising our corporate structure and providing access to the public equity markets, this dual-listing enhances Telesat’s ability to execute on its compelling investment opportunities to drive our growth—and the future of global broadband connectivity—including our transformative Telesat Lightspeed Low Earth Orbit satellite network.”
Dr. Mark H. Rachesky, Chairman of the Board of Telesat, added: “I commend the management team for developing and advancing our revolutionary global connectivity solution. By executing this strategically important transaction, we have aligned ownership and positioned Telesat to realize the significant value of our world-class assets for all equityholders.”
In total, Telesat Corporation and Telesat Partnership are expected to have 49,546,940 shares and units outstanding, of which a total of 11,907,246 Class A common shares and Class B variable voting shares of Telesat Corporation will be outstanding initially.
The Class A common shares and Class B variable voting shares of Telesat Corporation are listed for trading on NASDAQ and TSX, under the stock symbol TSAT. The equity securities of Telesat Corporation and Telesat Partnership that are not listed for trading consist of Class C shares of Telesat Corporation and units of Telesat Partnership, which are convertible into Class A common shares and Class B variable voting shares of Telesat Corporation in accordance with their terms. (See Exhibit 1, for further detail.)
Following the completion of the transaction, affiliated funds of MHR Fund Management LLC hold securities representing approximately 36% of Telesat’s outstanding equity (on a combined basis), and PSP Investments beneficially holds securities representing approximately 37% of Telesat’s outstanding equity (on a combined basis).
In connection with the transaction, Goldman Sachs & Co. LLC and BMO Capital Markets have acted as financial advisors to Telesat and Wachtell, Lipton, Rosen & Katz and Stikeman Elliott LLP have acted as legal counsel to Telesat. J.P. Morgan advised Telesat on the structuring of the transaction.
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- BMO Capital Markets
- Digital Infrastructure
- Goldman Sachs & Co. LLC
- JP Morgan Chase
- Loral Space & Communications Inc
- Low Earth Orbit
- MHR Fund Management LLC
- PSP Investments
- Public Sector Pension Investment Board
- Rosen & Katz
- Stikeman Elliott LLP
- Telesat Lightspeed
- Toronto Stock Exchange
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