By Paul A. Harris
St. Louis, Sept. 18 - EchoStar DBS Corp. priced a massively upsized $2.5 billion of senior notes (Ba3/BB-) on Thursday, according to a source close to the deal. The deal was increased from an original size of $1.5 billion.
The Littleton, Colo.-based satellite television company sold $1 billion of notes due Oct. 1, 2008 at par to yield 5¾%. Revised price talk was for a yield of 5¾%-5 7/8%, having tightened from 5 7/8%-6%.
In addition the company priced $1 billion of notes due Oct. 1, 2011 at par to yield 6 3/8%. Revised price talk was 6 3/8%, having tightened from 6 3/8%-6½%.
Both of the fixed-rate tranches are non-callable.
EchoStar also priced $500 million of floating-rate notes due Oct. 1, 2008. The non-call-two notes priced at par with a coupon of Libor plus 325 basis points. Price talk was Libor plus 325 basis points.
Banc of America Securities and Credit Suisse First Boston were joint bookrunners on the Rule 144A deal.
Proceeds will be used to redeem the 9 3/8% notes due 2009.
| Issuer: | EchoStar DBS Corp.
|
| Amount: | $2.5 billion
|
| Security description: | Senior notes
|
| Bookrunners: | Banc of America Securities, Credit Suisse First Boston
|
| Settlement date: | Oct. 2
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A
|
|
|
| Five-year fixed-rate tranche
|
| Amount: | $1 billion
|
| Maturity: | Oct. 1, 2008
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 267 basis points
|
| Call: | Make-whole at Treasuries plus 50 basis points
|
| Equity clawback: | Until Oct. 1, 2006 for 35% at 105.75
|
| Price talk: | 5 ¾%-5 7/8% (decreased from 5 7/8%-6%)
|
|
|
| Eight-year fixed-rate tranche
|
| Amount: | $1 billion
|
| Maturity: | Oct. 1, 2011
|
| Coupon: | 6 3/8%
|
| Price: | Par
|
| Yield: | 6 3/8%
|
| Call: | Make-whole at Treasuries plus 50 basis points
|
| Equity clawback: | Until Oct. 1, 2006 for 35% at 106.375
|
| Spread: | 251 basis points
|
| Price talk: | 6 3/8% (reduced from 6 3/8%-6½%)
|
|
|
| Five-year floating-rate tranche
|
| Amount: | $500 million
|
| Maturity: | Oct. 1, 2008
|
| Coupon: | Libor plus 325 basis points
|
| Price: | Par
|
| Call features: | Callable after Oct. 1, 2005 at 102, then 101, declining to par on Oct. 1, 2007 and thereafter
|
| Equity clawback: | Until Oct. 1, 2006 for 35% at par plus applicable coupon
|
| Price talk: | Libor plus 325 basis points
|
|
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