Telesat has secured a $120 million loan as it faces looming debt obligations, with shares dropping 13% following the announcement. The Canadian satellite operator stated in a Thursday filing that it believes existing debt will be managed to allow its GEO business to continue operations. However, the company warned of "material uncertainty" regarding Telesat GEO's debt maturities due in December 2026. The filing acknowledged substantial doubt about the division's ability to meet debt obligations when they come due, though the company provided no guarantee of successfully addressing these challenges. The development highlights mounting financial pressure on the satellite communications provider as it navigates its debt structure.

Telesat's subsidiary has secured a C$2.3 billion, 15-year Arctic connectivity contract under Canada's Enhanced Satellite Communications Project. The agreement will fund 69 Lightspeed satellites. The announcement follows strong stock performance, with shares gaining 44.44% over seven days and 85.46% year-to-date. The stock now trades at $54.08. Telesat currently operates at a loss of $185.31 million on revenue of $388.27 million. The company's price-to-sales ratio stands at 3x, above peer and US telecom industry averages of 1.9x and 1.4x respectively. However, Simply Wall St's regression model suggests a fair P/S ratio of 6.9x, indicating potential upside if forecast revenue growth materialises. The contract prompted a special investor call.