Posted: Sat, Apr 6, 2024, 10:24 AM ET (1424 GMT)
The Canadian government is boosting its investment in Telesat's Lightspeed constellation. Telesat said Monday it received a letter from the Canadian government last week that agreed to 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 government will also have the option to purchase 10% of Lightspeed for $300 million. The new loan is 50% higher than one announced in 2021, but requires Telesat to pay off the loan in 15 years versus 20 years under the original agreement. Telesat recently reported 704 million Canadian dollars in revenue for 2023, down 9% year-on-year when adjusted for changes in foreign exchange rates, with the company blaming an industry-wide decline in satellite TV revenues for the lower results.

Related Links:

•  SpaceNews article
•  Telesat press release