Telesat Announces Redemption of 12.5% Senior Subordinated Notes

March 28, 2013

Telesat Holdings Inc. have notified the trustee under the indenture dated as of June 30, 2008 (the “Senior Subordinated Indenture”) of their election to redeem any and all of the 12.5% senior subordinated notes due 2017 (the “Senior Subordinated Notes”) outstanding thereunder as of May 1, 2013 (the “Redemption Date”).  The notice specifies that the redemption price will be equal to 106.25% of the principal amount of the Senior Subordinated Notes outstanding on the Redemption Date.

As of March 28, 2013, the outstanding principal amount of the Senior Subordinated Notes is approximately US$217 million.  The Co-Issuers expect to deposit cash with the trustee in an amount sufficient to redeem the outstanding Senior Subordinated Notes on the Redemption Date prior to the date thereof.  The Co-Issuers intend to pay the installment of interest on the Senior Subordinated Notes that is due to be paid on the Redemption Date in the usual manner to holders of such notes registered at the close of business on the relevant record date.