By Stephanie N. Rotondo
Seattle, March 10 – Dish Network Corp. priced a $1 billion offering of 2.375% seven-year convertible notes, with an initial conversion premium of 32.5%, the company said in a press release.
The yield came at the cheap end of the 1.875% to 2.375% coupon talk and within the 30% to 35% conversion premium talk.
Deutsche Bank Securities Inc. is the bookrunner of the Section 4(a)(2) private placement.
The convertible bonds are noncallable for life.
The issue is convertible under certain circumstances and during certain periods. Conversions will be settled in cash, class A common stock, or a combination of the two, at the company’s option.
The initial conversion rate is 12.1630 shares per each $1,000 of notes, equal to an initial conversion price of $82.22.
Proceeds will be used for strategic transactions, which may include wireless and spectrum-related transactions and other general corporate purposes.
Dish is an Englewood, Colo.-based satellite TV provider.
| Issuer: | Dish Network Corp.
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| Securities: | Convertible notes
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| Amount: | $1 billion
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| Maturity: | March 15, 2024
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| Bookrunner: | Deutsche Bank Securities Inc.
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| Coupon: | 2.375%
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| Price: | Par of $1,000
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| Call options: | None
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| Contingent conversion: | Yes
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| Net share settlement: | Yes
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| Initial conversion rate: | 12.1630 shares
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| Initial conversion price: | $82.22
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| Initial conversion premium: | 32.5%
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| Pricing date: | March 10
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| Settlement date: | March 17
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| Talk: | 1.875% to 2.375% yield, up 30% to 35%
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| Distribution: | Section 4(a)(2) private placement
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| Stock symbol: | Nasdaq: DISH
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| Stock price: | $62.05 as of March 10 close
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| Market capitalization: | $28.72 billion
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