Moody’s assigns Ba3 to DISH convertibles

Moody's Investors Service said it assigned a Ba3 (LGD5) rating to DISH Network Corp.'s new $2.5 billion convertible notes due 2026.

The offering includes a greenshoe option, allowing the company to issue an additional $500 million of convertible notes within the next 30 days if there is demand.

Proceeds will be used for general corporate purposes, which may include wireless and spectrum-related strategic transactions.

The new notes are unsecured obligations issued by the parent, DISH, and are not guaranteed by the company's subsidiaries.

This assignment will not impact DISH's Ba3 corporate family rating, Ba2-PD probability of default rating or DISH's pay-TV subsidiary, DISH DBS Corp.'s Ba3 senior unsecured debt rating, but it does weekly position those ratings.

Moody’s said it believes that the company is committed to returning total leverage, including the convertible debt to levels (under 4.75 times with Moody's standard adjustments assuming no material deterioration in subscriber trends) commensurate with the Ba3 ratings by the end of 2017.

The speculative grade liquidity rating is SGL-3 and the outlook remains stable.

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