Telesat Lenders Propose C$2.3 Billion Rescue Deal to Avert December Default -- WSJ

By Alicia McElhaney

Creditors of Telesat Canada have proposed a C$2.3 billion (roughly $1.63 billion) deal to help the telecom company pay down a coming debt maturity and avert a default, according to people familiar with the matter.

Term lenders to the publicly traded satellite provider have offered to help the company raise a combination of new equity and debt to repay their loan, which matures in December, the people said.

The lenders are prepared to provide the entirety of the new capital. Telesat's equity holders, including private-equity firm MHR Fund Management and Canadian pension plan PSP Investments, will be invited to participate, the people said.

Telesat hasn't responded to the proposal, which marks the second such offer lenders have put forth in recent months, the people said.

PSP declined to comment Monday. Representatives for Telesat and MHR didn't immediately respond to requests seeking comment.

Write to Alicia McElhaney at alicia.mcelhaney@wsj.com

(END) Dow Jones Newswires

October 19, 2026 15:29 ET (19:29 GMT)