Telesat closer to financing satellite network after Canada investment

OTTAWA: Telesat took a major step toward financing its low earth orbit (LEO) satellite constellation that aims to provide high-speed broadband after Canada on Thursday said it would invest C$1.44 billion ($1.2 billion) in the project.

Canada said it will loan Telesat, an Ottawa-based satellite communications firm, C$790 million, while purchasing C$650 million in preferred stock in the LEO unit, called Telesat Lightspeed. Canada will also receive warrants that can be exchanged for common shares in Telesat.

“We have dramatically moved the ball forward with this and expect to be fully financed in the near term,” Telesat Chief Executive Officer Dan Goldberg said in a telephone interview. “We are nearly there.”