Canada increases Telesat Lightspeed investment

TAMPA, Fla. — Canada is prepared to invest 50% more than initially planned to help flagship geostationary operator Telesat fund its Lightspeed low Earth orbit (LEO) broadband constellation.
Telesat said it received a letter from the Canadian government last week that agreed terms for a loan worth 2.14 billion Canadian dollars ($1.6 billion) for Lightspeed, nearly half the 198-satellite network’s $3.5 billion budget.
The terms also include an exchange of warrants enabling the government to buy 10% of Lightspeed for $300 million, valuing the constellation at $3 billion ahead of satellite deployments slated to get underway in 2026 via SpaceX.
The deal supersedes a provisional 1.44 billion Canadian dollar investment agreement reached in August 2021, which consisted of a 790 million Canadian dollar loan and 650 million Canadian dollars in preferred equity upfront.
The new loan would carry a floating interest rate of 4.75% above the Canadian Overnight Repo Rate Av...

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