By Paul A. Harris
St. Louis, Sept. 28 - EchoStar DBS Corp. priced a $500 million issue of 7% seven-year senior notes (Ba3/BB-) at 97.983 to yield 7 3/8% on Thursday, according to an informed source.
The yield came on the wide end of the 7¼% area price talk.
The company came with a quick-to-market transaction with the intention of selling either the seven-year bullet notes or else to sell 10-year bullets, based upon demand, the source said. Although the 10-year notes were ultimately abandoned they had been talked at the 7½% area.
JP Morgan and Deutsche Bank Securities were joint bookrunners for the Rule 144A and Regulation S issue.
Proceeds will be used to refinance the company's floating-rate notes.
EchoStar is an Englewood, Colo.-based satellite TV company that operates DISH Network.
| Issuer: | EchoStar DBS Corp.
|
| Amount: | $500 million
|
| Maturity: | Oct. 1, 2013
|
| Security description: | Senior notes
|
| Bookrunners: | JP Morgan, Deutsche Bank Securities
|
| Coupon: | 7%
|
| Price: | 97.983
|
| Yield: | 7 3/8%
|
| Spread: | 280 bps
|
| Call protection: | Non-callable
|
| Trade date: | Sept. 28
|
| Settlement date: | Oct. 18
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7¼% area
|
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