EchoStar sets price talk for $1.8 billion eight-, 10-year notes

By Paul A. Harris

Portland, Ore., May 16 - EchoStar Corp. set price talk on its $1.8 billion two-part offering of high-yield notes on Monday, according to a market source.

A $1 billion tranche of eight-year senior secured notes (Ba3/B+) is talked with a yield in the 6 5/8% area.

The senior secured notes will be non-callable but will come with a provision allowing the issuer to redeem 10% of the notes annually.

Meanwhile an $800 million tranche of non-callable 10-year senior unsecured notes (B3/B-) is talked with a yield in the 7 7/8% area.

The deal is set to price on Tuesday afternoon.

Deutsche Bank Securities Inc. is the bookrunner for the Rule 144A with registration rights deal.

Proceeds will be used to fund the purchase of Hughes Communications, Inc.

The issuing entity will be EH Holding Corp., a subsidiary of EchoStar, an Englewood, Colo.-based provider of equipment sales, digital broadcast operations and satellite services.

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