DirecTV nets US$3bn through note issue

DTH broadcaster DirecTV has raised US$3bn through a three tranche senior unsecured bond offering. Citigroup and JP Morgan were joint book-running managers on the transaction.
Via its subsidiary DirecTV Holdings, the company issued US$1.2bn of 3.55%…

DTH broadcaster DirecTV has raised US$3bn through a three tranche senior unsecured bond offering. Citigroup and JP Morgan were joint book-running managers on the transaction.

Via its subsidiary DirecTV Holdings, the company issued US$1.2bn of 3.55% Senior Notes due 2015, US$1.3bn of 5.2% Senior Notes due 2020 and US$500m of 6.35% Senior Notes due 2040. The bonds rank pari passu with all of the company’s existing and future senior debt and are guaranteed by all of DirecTV’s subsidiaries. The offer closed March 11.

DirecTV plans to use net proceeds, approximately US$2.98bn, for general corporate purposes, including the repayment of all of its outstanding US$978m Term Loan C issued under its senior secured credit facility and to fund a portion of its recently announced US$3.5bn share repurchase plan.

DirecTV was last in the market with a US$2bn dual note offering in October 2009 with a US$2bn dual note offering, comprising US$1bn of 4.75% senior unsecured notes due 2014 and US$1bn senior unsecured notes due 2019. Proceeds from that financing were partially used to repurchase its existing 8.4% senior notes due 2013, as well as to repay certain debt that it took on as part of the merger with Liberty Entertainment. Citigroup, Credit Suisse and JPMorgan were leads on the transaction.