By Paul A. Harris
Portland, Ore., May 15 - DISH DBS Corp. priced an upsized $2.6 billion two-part offering of senior notes (Ba3/BB-/) on Wednesday in a transaction backing its merger with Sprint Nextel Corp.
The offering included a $1.25 billion tranche of four-year notes, which priced at par to yield 5%.
The yield printed on top of yield talk. Earlier guidance came in the 4¾% area. The four-year notes will be callable at par for the first six months and at 101 in the following six months in the event that the merger is not completed.
DISH also priced a $1.35 billion tranche of 10-year notes at par to yield 6¼%. The yield printed on top of yield talk. Earlier guidance came in the 6% area. The 10-year notes will be callable at 101 for the first 12 months in the event that the merger is not completed.
Previously the special call structure, covering both tranches, provided a par call for the first six months and a 101 call thereafter if the merger is not completed.
Barclays was the lead left bookrunner. Jefferies & Co., Macquarie Capital (USA) Inc. and RBC Capital Market LLC were the joint bookrunners.
Proceeds will be placed into escrow, subject to release to fund the merger; the notes will be redeemed if the merger is not consummated, as described above.
DISH is a direct broadcast satellite pay-TV service based in Englewood, Colo.
| Issuer: | DISH DBS Corp.
|
| Amount: | $2.6 billion, increased from $2.5 billion
|
| Securities: | Senior notes
|
| Left bookrunner: | Barclays
|
| Joint bookrunners: | Jefferies & Co., Macquarie Capital (USA) Inc., RBC Capital Markets LLC
|
| Call protection: | Non-callable
|
| Make-whole: | Treasuries plus 50 bps
|
| Trade date: | May 15
|
| Settlement date: | May 28
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Marketing: | Quick to market
|
|
|
| Four-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | May 15, 2017
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Spread: | 439 bps
|
| Special call: | Par for the first six months, 101 for the next six months if the merger is not completed
|
| Price talk: | 5% (Guidance was 4¾% area)
|
|
|
| 10-year notes
|
| Amount: | $1.35 billion
|
| Maturity: | May 15, 2023
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Spread: | 431 bps
|
| Special call: | 101 for the first 12 months if the merger is not completed
|
| Price talk: | 6¼% (Guidance was 6% area)
|
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