The consortium includes financial institutions such as the Canadian Imperial Bank of Commerce, Credit Suisse Securities, Morgan Stanley Senior Funding, UBS Securities and ING Bank of Canada.

   Telesat said the proceeds from the senior credit facilities would be used to refinance Telesat’s outstanding debt of approximately $2.1 billion under its previous credit agreement, which has been terminated. The operator also plans to pay the accrued interest, closing costs and other third-party expenses related to the transaction. 

   Approximately $586 million of Telesat’s debt balance has already been paid, with the majority of the balance to be paid off during the remainder of 2012.