New Issue: DirecTV $1.4 billion 10-year notes yield 8 3/8%

By Paul A. Harris

St. Louis, Feb. 25 - DirecTV Holding LLC priced $1.4 billion of senior subordinated notes due 2013 (B1/B) Tuesday at par to yield 8 3/8%, according to a syndicate source.

Price talk was for a yield of 8¼%-8½%.

The offering was jointly issued with DirecTV Financing Co.

Deutsche Bank Securities Inc., Banc of America Securities, Credit Suisse First Boston, Goldman Sachs & Co. and Salomon Smith Barney were joint bookrunners. SG Cowen was co-manager.

Proceeds from the Rule 144A deal will be used to repay debt under existing credit facilities, to fund Hughes Electronics Corp.'s business plan through projected cash-flow breakeven and for Hughes' other corporate purposes.

The issuer is an El Segundo, Calif. digital satellite television service provider.

Issuer:	DirecTV Holding LLC/DirecTV Financing Co., Inc.
Amount:	$1.4 billion
Maturity:	March 15, 2013
Security description:	Senior subordinated notes
Bookrunners:	Deutsche Bank Securities, Banc of America Securities, Credit Suisse First Boston, Goldman Sachs, Salomon Smith Barney (joint)
Coupon:	8 3/8%
Price:	Par
Yield:	8 3/8%
Spread:	457 basis points
Call features:	Callable on March 15, 2008 at 104.188, then at 102.792, 101.396, declining to par on March 15, 2011 and thereafter
Equity clawback:	Until March 15, 2006 at 108.375 for up to 35%
Settlement date:	Feb. 28, 2003 (T+3)
Ratings:	Moody's: B1
	Standard & Poor's: B
Rule 144A Cusip:	25459HAA3
Price talk:	8¼%-8½%

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