Longtime Asian operator to assume commercial operation of Telstar 10 in
OTTAWA, June 1 /CNW/ - Telesat Canada, the world's fourth largest fixed
satellite operator, announced today an agreement to relinquish its leasehold
interest in Telstar 10 to APT Satellite Company Limited (APT), the satellite's
owner, and to transfer related customer contracts, for a total consideration
of US$69,500,000, subject to adjustment. Proceeds will be used to fund
replacement satellites or repay debt, in accordance with Telesat's financing
arrangements. The transaction announced today is one of the transactions
previously disclosed as being under consideration involving the possible
disposition of certain of Telesat's international satellites. The parties
expect to complete the transaction in July 2009.
Telesat, through its predecessor company, Loral Skynet, has had a lease
arrangement with APT on Telstar 10 for almost a decade. APT operates the
satellite and also provides technical support to many Telesat customers.
Dan Goldberg, President and CEO of Telesat said: "Given APT's deep
involvement with Telstar 10, the complex regulatory environment associated
with the satellite, and the upcoming requirement to replace Telstar 10, this
transaction makes strong strategic sense for both parties and ensures that the
users of Telstar 10 will continue to receive high quality satellite services
for the life of the satellite and its replacement."
For the first quarter of 2009, Telstar 10 accounted for approximately 5%
of Telesat's revenue and less than 1% of its $5.3 Billion contracted backlog.
Telstar 10, one of Telesat's 12 state-of-the-art satellites, is a hybrid
satellite operating in the standard and extended C-bands and the standard
Ku-band frequency ranges. The C-Band payload covers Asia, Japan, Australia,
and parts of Europe and Africa. The Ku-band payload has focused coverage of
China and Korea, including Hong Kong, Macau and Taiwan.
As announced previously, Telesat continues to be in discussions regarding
the potential sale of its interests in another of its international
satellites. However, Telesat cannot at this time assess the probability of
concluding any further transaction under discussion or under what terms,
including price, the assets may be sold.
About Telesat (www.telesat.com)
Headquartered in Ottawa, Canada, with offices and facilities around the
world, Telesat is the fourth-largest fixed satellite services operator. The
company provides reliable and secure satellite-delivered communications
solutions to broadcast, telecom, corporate and government customers. Telesat
has a global state-of-the-art fleet of 12 satellites, and one additional
satellite under construction, and manages the operations of 13 additional
satellites for third parties. Telesat is privately held. Its principal
shareholders are Canada's Public Sector Pension Investment Board and Loral
Space & Communications Inc. (NASDAQ: LORL).
Statement under the Private Securities Litigation Reform Act
This news release may contain statements that are not based on historical
fact and are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Statements in this release
concerning the beliefs, expectations, intentions, future events, future
performance, business prospects and business strategy, including statements
regarding projections for 2009 and beyond, are based on several assumptions.
If any of these assumptions are not satisfied or prove to be incorrect, actual
results could differ materially from those indicated in the forward-looking
statements, depending on a variety of factors including, but not limited to,
Telesat's ability to implement its business strategy and competition in the
market. The information presented in this release reflects Telesat's
expectations as of the date of this release. Telesat undertakes no obligation
to update or revise the information herein.
For further information:
For further information: Vanessa Brûlé, Telesat, (613) 748-8700 ext.