DirecTV driving by with $1 billion tap of 5 7/8% secured notes due 2027; initial talk 101 area

By Paul A. Harris

Portland, Ore., Dec. 6 – DirecTV Holdings LLC and DirecTV Financing Co. Inc. plan a $1 billion add-on to their 5 7/8% senior secured notes due Aug. 15, 2027 in a Monday drive-by, according to market sources.

The deal, which was set to kick off on a Monday conference call with investors, is in the market with initial price talk in the 101 area, a trader said.

Credit Suisse Securities (USA) LLC is the left bookrunner for the Rule 144A and Regulation S offering. Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., BMO Capital Markets Corp., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., MUFG, UBS Securities LLC, Barclays and Jefferies LLC are the joint bookrunners.

The notes become callable on Aug. 15, 2023 at 104.406. A special call provision allows the issuer to redeem 10% of notes annually at 103 during the non-call period.

The Dallas-based satellite broadcasting company plans to use the proceeds to pay off the remaining unreturned contributions on the outstanding senior preferred units (resulting in the automatic cancellation of the units) and to partially pay down the remaining unreturned contributions on the outstanding junior preferred units held by members of its parent.

The original $2.3 billion issue price in July 2021.

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