One month after it netted a new US$2bn revolving credit facility, satellite broadcaster DirecTV is back in the debt markets, issuing US$4bn of senior secured notes.
The triple tranche transaction is split between US$1.5bn of 3.5% senior unsecured notes…
One month after it netted a new US$2bn revolving credit facility, satellite broadcaster DirecTV is back in the debt markets, issuing US$4bn of senior secured notes.
The triple tranche transaction is split between US$1.5bn of 3.5% senior unsecured notes due March 2016, US$1.5bn of 5% senior unsecured notes due March 2021 and US$1bn of 6.375% senior unsecured notes due March 2041.
As with the US$2bn revolver that was secured in early February, the new notes have been issued via subsidiaries DirecTV Holdings and DirecTV Financing Co.
The joint book-running managers and lead underwriters for the offering are Credit Suisse, Morgan Stanley, Barclays Capital, RBS and UBS. Co-managers and underwriters are BofA Merrill Lynch, Citigroup, Goldman Sachs, JP Morgan. The other banking underwriters comprise Santander, BBVA Securities, Credit Agricole CIB, Deutsche Bank, Mitsubishi UFJ, Mizuho Securities, HSBC, Lloyds Securities, US Bancorp.
DirecTV has frequently tapped the bond markets to raise new debt, taking advantage of the low yields for investment grade companies. In 2010, the company completed US$6bn of senior notes financings, split between two triple tranche issues in March and August. A large portion of that debt was used to repay approximately US$2.32bn of remaining senior secured credit facilities and US$1.54bn to repay the debt and associated equity collars assumed in the Liberty transaction.
Net proceeds from this latest financing are to be used for general corporate purposes, which may include funding the company’s share repurchase programme. In its full year 2010 results announcement in late February, DirecTV stated that its board had approved a US$6bn share buyback program for 2011.
DirecTV has undertaken a series of stock repurchase schemes over the past few years. Last year alone the company paid US$5.11bn to buy back approximately 136 million Class A common shares, representing about 14.5% of outstanding shares.
In spite of having approximately US$14.462bn of outstanding indebtedness, US$10.47bn of which is long term debt, the DirecTV board has previously outlined its intention to increase the company’s leverage with a target of 2.1 times gross debt to consolidated EBITDA.Net proceeds from this latest financing are to be used for general corporate purposes, which may include funding the company’s share repurchase programme. In its full year 2010 results announcement in late February, DirecTV stated that its board had approved a US$6bn share buyback program for 2011.
DirecTV has undertaken a series of stock repurchase schemes over the past few years. Last year alone the company paid US$5.11bn to buy back approximately 136 million Class A common shares, representing about 14.5% of outstanding shares.
In spite of having approximately US$14.462bn of outstanding indebtedness, US$10.47bn of which is long term debt, the DirecTV board has previously outlined its intention to increase the company’s leverage with a target of 2.1 times gross debt to consolidated EBITDA.
