Telesat says about C$2.43 billion in debt at its geostationary satellite unit falls due in December 2026, while its filing shows consolidated resources alone are expected to leave the maturities uncovered.
The filing showed two December obligations: a US$1.3205 billion Term Loan B balance and US$387 million in 2026 Senior Secured Notes as of Sept. 30. The combined US$1.7075 billion equals about C$2.43 billion at the filing’s exchange rate of C$1.4232 per US$1. Telesat also listed roughly C$3.1 billion in GEO debt due across December 2026, June 2027 and October 2027.
Telesat reported C$813.8 million in consolidated cash and cash equivalents at quarter-end, including C$286.7 million held within Telesat GEO and its subsidiaries. A separate disclosure put cash held by Telesat GEO and its debt guarantors at C$105.9 million; that figure covers a narrower group of entities.
The company said its consolidated cash flow and resources by themselves were not expected to cover Telesat GEO’s debt payments. Refinancing talks were active, but Telesat said key conditions were beyond its influence and it could not assure a successful outcome. The filing described the uncertainty as “substantial doubt” over Telesat GEO’s ability to meet its obligations.
On the Oct. 29 earnings call, Telesat President and CEO Daniel S. Goldberg said he was “pretty constrained” in answering refinancing questions. In its earnings release, Telesat said advisers were working with GEO creditors while assessing other options.
The refinancing effort comes as the GEO business reports lower revenue. The GEO unit generated C$79 million in the quarter, 21% less than in the year-earlier period. Telesat cited a broadcast contract that was not renewed, reduced contracted capacity for another broadcast customer, lower service to a North American broadband customer, and certain geostationary satellites being removed from service.
Telesat’s filing separates GEO debt from its Low Earth Orbit (LEO) Lightspeed business. Telesat LEO does not guarantee the GEO financing and has a segregated funding source for Lightspeed. The filing schedules further GEO debt maturities for June and October 2027.
