By Paul A. Harris
St. Louis, April 6 - Hughes Network Systems LLC priced an upsized $450 million issue of eight-year senior notes (B1/B-) at par on Thursday to yield 9½%, according to a market source.
The yield came at the tight end of the 9½% to 9¾% price talk.
Bear Stearns & Co. and Morgan Stanley were joint bookrunners for the Rule 144A offering. Banc of America Securities LLC was the co-manager.
Proceeds will be used to refinance existing debt and for general corporate purposes.
The issue was upsized from $375 million.
The prospective issuer is a provider of broadband satellite networks and services, with headquarters in Germantown, Md.
Issuer: | Hughes Network Systems LLC
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Amount: | $450 million (increased from $375 million)
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Maturity: | April 15, 2014
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Security description: | Senior notes
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Bookrunners: | Bear Stearns & Co., Morgan Stanley
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Co-manager: | Banc of America Securities LLC
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Coupon: | 9½%
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Price: | Par
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Yield: | 9½%
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Spread: | 462 bps
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Call protection: | Four years
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Equity clawback: | Three years for 35%
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Trade date: | April 6
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Settlement date: | April 13
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Ratings: | Moody's: B1
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| Standard & Poor's: B-
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Distribution: | Rule 144A
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Price talk: | 9½%-9¾%
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