Telesat lenders proposed $3.2 billion rescue as shares fell

Lenders for Telesat proposed a $3.2 billion rescue offer for debt due in December, and the Canadian satellite operator’s shares fell 9.8 per cent on Tuesday, their sharpest decline of the week.

The stock moved from $63.73 on Monday down to $57.47 on Tuesday, then climbed back to $59.81 by Friday, leaving shares up 51.1 per cent for the year. Over the full five-day period, the stock closed down 6.2 per cent.

The SpaceQ Canadian Space Index fell 3.6 per cent to 95.15 while the S&P/TSX Composite dropped 1.1 per cent. Six of the nine index companies declined during the week. SpaceQ calls the index an editorial measure rather than an investable index or financial benchmark, and it began at 100.00 from the Sept. 4, 2026 close.

MDA Space slipped 7.2 per cent on Thursday and finished the week down 3.1 per cent at $38.64. 5N Plus fell 7.4 per cent on Thursday and closed down 3.4 per cent at $26.25. Maritime Launch Services gave up 3.2 per cent to 46 cents, a week after its rise on conditional Toronto Stock Exchange approval.

Baylin Technologies dropped 17.5 per cent to 16.5 cents, its lowest close of the past year and the board’s largest decline. Intermap Technologies fell 3.8 per cent to 75 cents, also a 52-week closing low. Baylin shares have fallen 36.5 per cent since January, while Intermap’s 59.5 per cent drop this year is the worst of the nine.

Calian Group gained 1.6 per cent to $84.36, leading the board. Calian confirmed Will Majic as chief financial officer on Monday and named Kristine McTaggart president of its essential industries business. C-COM Satellite Systems rose 1.2 per cent to 86 cents based on its last trade on Oct. 22, while Magellan Aerospace added 0.4 per cent, holding a 78.1 per cent gain since January, the strongest among the nine.

NorthStar Earth & Space gained 14.1 per cent to $US 3.31 on NYSE American, recovering the previous week’s 11.6 per cent loss, and its conditional Toronto listing approval must be completed by Nov. 30.

Telesat GEO, the unit operating the older geostationary satellites, owes about $2.4 billion on a term loan and notes maturing in December, with the first payment due Dec. 6. Telesat said its cash resources alone cannot cover $1.7 billion in debt due in December 2026, so it must refinance or raise funds. Chief financial officer Donald Tremblay said the company is still pursuing a negotiated resolution in good faith.

The point came in the first half report released Thursday, which showed revenue falling 25 percent to C$79 million for the six months ending in June. Telesat posted a net loss of C$559 million for the quarter, and GEO segment revenue reached C$78 million, down 26 percent from the same stage in 2025. It borrowed $120 million in August 2026 for general corporate purposes at a Telesat GEO subsidiary.

Lightspeed is now expected to cost about $5.2 billion, up from the earlier $3.8 billion estimate. Telesat is expanding the constellation to 225 satellites, a 44 percent increase over the prior plan. The operator also qualifies for as much as $189 million in Upper C-Band incentive payments recently announced by the Federal Communications Commission.

Telesat signed a C$2.7 billion agreement, including option periods, with Canada’s Defense Investment Agency for Lightspeed Military Ka-band services under the ESCP-P program. The 15-year contract was signed earlier in August 2026. Telesat LEO ULC had already reached an agreement in principle with the Defence Investment Agency in July for the same program.

The work covers secure Military Ka-band Arctic connectivity for the Canadian Armed Forces and builds on a Strategic Partnership Agreement announced in late 2025 among the Defence Investment Agency, Telesat and MDA Space. Telesat expects a definitive contract in the coming weeks, with Lightspeed global service delivery still on track for Q1 2028. ‘Canada will accelerate access to secure, advanced, resilient and sovereign connectivity,’ Dan Goldberg said.

Telesat has secured access to more Canadian land for landing stations ahead of deploying pathfinders for its Lightspeed broadband constellation in December. The access supports deployment preparations ahead of global commercial service.

SpaceX posted $US 14.6 billion in third-quarter revenue after Tuesday’s close and recorded its first profit as a public company. The shares rose 7.8 per cent on Wednesday to $US 159.31, fell 9.1 per cent on Thursday, and ended the week up 1.0 per cent.

Lockheed Martin gained 7.0 per cent on Thursday after reporting third-quarter sales of $US 20.7 billion, up 11 per cent, and raising its yearly profit forecast. Northrop Grumman reported Tuesday sales up 7 per cent to $US 11.1 billion, a backlog of $US 109.6 billion, and an increased profit forecast.

Iridium reported $US 245.7 million in third-quarter revenue on Tuesday, up 8 per cent, and said Rocket Lab’s purchase should close by mid-2027. Momentus dropped 17.6 per cent, the steepest U.S. decline, and Comtech fell 10.8 per cent. Iridium shares gained 1.5 per cent, and eleven of the 20 U.S. space companies rose. The Procure Space ETF added 1.5 per cent while the S&P 500 slipped 0.5 per cent.

OHB added 8.0 per cent to €207, about $325, building on the previous week’s 21.4 per cent gain. Avio rose 1.7 per cent to €30.63, about $48.04. Synspective dropped 5.4 per cent in Tokyo to 1,153 yen, about $10.29, and Astroscale fell 4.4 per cent to 1,033 yen, about $9.22.

ispace slipped 2.3 per cent to 374 yen, about $3.34, and Innospace, the South Korean KOSDAQ-listed rocket developer, fell 6.4 per cent to 4,950 won, about $5.21. Seraphim Space Investment Trust dropped 9.3 per cent to £1.74, about $3.25, marking its second weekly decline since reporting annual results on Oct. 15.

Firefly Aerospace said Wednesday that Elytra passed its preliminary design review, and the spacecraft will transport NASA drones to the Moon’s south pole during the MoonFall mission. Viasat’s Maxwell spacecraft, built by Rocket Lab, launched Tuesday aboard a SpaceX Falcon 9 to test NASA relay services.