DISH paper mostly higher after exchange offers dropped; market gauges issuer’s options

By Cristal Cody

Tupelo, Miss., Jan. 30 – DISH DBS Corp.’s bonds traded flat to ½ point better on Tuesday as the market absorbed parent EchoStar Corp.’s late Monday announcement that a subsidiary terminated distressed debt exchange offers for four tranches of notes after widespread negative reactions.

DISH’s 5 1/8 senior notes due 2029 (Caa2/CC), one of the four tranches offered in the exchange, were flat at 39½ bid on $7 million of trading, a source said.

It was unclear how many notes were tendered before the termination since that information is usually released later, a source said.

DISH Network Corp.’s convertible paper also was over 1 point higher after EchoStar reiterated that exchange offers for two tranches of convertible bonds will continue.

“There was a contingency situation they ended today, so there was some activity,” a trader said.

DISH Network’s 3 3/8% convertible notes due 2026 (Caa2/CC) traded over 1¼ points better at 58 bid on over $8 million of volume.

DISH’s merger with EchoStar completed Dec. 31 buys it time but not much with the company facing subscriber losses across all its businesses, Craig Moffett, partner and senior research analyst at MoffettNathanson LLC, said in a January note released Tuesday to Prospect News.

“The most likely outcome for DISH remains bankruptcy, in our view,” he said.

© 2015 Prospect News.
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