DISH expected in September with $3.3 billion bond deal to repay wireless spectrum credits

By Paul A. Harris

Portland, Ore., Sept. 2 – DISH Network Corp. is expected to come to the high-yield market during September seeking to place $3.3 billion of bonds, according to buyside sources.

Underwriters remain to be announced.

The Englewood, Colo.-based provider of satellite TV seeks to raise the cash in order to repay approximately $3.3 billion of “very small business” credits awarded to Northstar Wireless, LLC and SNR Wireless, LLC in an AWS-3 wireless spectrum auction held by the U.S. Federal Communications Commission in late 2014.

In an Aug. 17, 2015 memorandum the FCC found that DISH holds 85% equity interests in Northstar Wireless and SNR Wireless, rendering those entities ineligible for the credits awarded to small businesses participating in the auction.

In that Aug. 17 memo the FCC ruled that DISH had 30 days to put up $3.3 billion in cash or standby letters of credit.

“Ordinarily DISH is an opportunistic issuer, sensitive to market conditions” a high-yield portfolio manager remarked on Wednesday.

“However there is a time-factor involved, and we expect them to come in September.”

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