DirecTV to sell $500 million senior notes in April

By Paul A. Harris and Sara Rosenberg

St. Louis, March 11 - DirecTV Group Inc. said it intends to sell $500 million of unsecured senior notes via Rule 144A and Regulation S.

The notes will be guaranteed on a senior basis by all of DirecTV Holdings' material domestic subsidiaries.

The company will also obtain a new $2 billion credit facility. A company source told Prospect News that Bank of America and JP Morgan are the lead banks on the loan.

The company expects both transactions to be completed in early April.

Proceeds will be used to repay and terminate the existing $1.26 billion senior secured credit facility of DirecTV Holdings and to repay an unsecured promissory note in the amount of $875 million owed to DirecTV Group. The remaining proceeds will be available for working capital or other purposes.

DirecTV is an El Segundo, Calif., provider of digital multichannel television entertainment, broadband satellite networks and services.

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