CPE News (11/10/2021) – Telesat Corporation has filed a preliminary non-offering prospectus to enable Telesat Corporation and Telesat Partnership LP to each become a “reporting issuer” in the Qualifying Jurisdictions pursuant to applicable securities legislation.
Telesat Corporation was incorporated under BCABA on October 21, 2020. Telesat Corporation is the general partner of Telesat Partnership LP, which was formed under the Limited Partnership Act (Ontario) on November 12, 2020.
Telesat Corporation was formed to acquire indirect interests in Telesat Canada and Loral Space & Communications Inc. and to operate as the general partner of Telesat Partnership LP. The Partnership will directly or indirectly, as applicable, hold Telesat Corporation’s interest in Telesat Canada and Loral following completion of the transactions.
Telesat Corporation’s public shares are expected to trade on the NASDAQ under the symbol “TSAT.” TeleSat Corporate has applied to have the Telesat public shares listed on the Toronto Stock Exchange (TSX) under the under the symbol “TSAT.”
On November 23, 2020, Loral entered into an transaction agreement with Telesat Canada, Telesat Corporation, Telesat Partnership, Telesat CanHoldco, Merger Sub, PSP Investments and Red Isle Private Investments Inc.
The transaction will result in the current stockholders of Loral, PSP Investments (through Red Isle) and the other shareholders in Telesat Canada who sign Stockholder Contribution Agreements or Optionholder Exchange Agreements (principally current or former management) owning approximately the same percentage of equity in Telesat Canada indirectly through Telesat Corporation and/or Telesat Partnership as they currently hold (indirectly in the case of Loral stockholders and PSP Investments) in Telesat Canada, Telesat Corporation becoming the publicly traded general partner of Telesat Partnership and Telesat Partnership indirectly owning all of the economic interests in Telesat Canada, except to the extent that the other shareholders in Telesat Canada elect to retain their direct interest in Telesat Canada.
The transaction is expected to close in the fourth quarter of 2021, subject to the receipt of the required regulatory approvals and other customary conditions.
Telesat Corporation shares on fully exchanged and converted basis:
PSP Investments, through Red Isle Private Investments Inc. – 18,211,203 shares (36.8%)
MHR Fund Management LLC – 18,050,092 shares (36.4%)