US DTH giant Dish Network has priced upsized senior notes worth US$2.3bn at par as it continues to hunt for a partner to deploy a nationwide 4G network.
Undeterred by its public takeover target Clearwire moving closer to a tie-up with rival suitor…
US DTH giant Dish Network has priced upsized senior notes worth US$2.3bn at par as it continues to hunt for a partner to deploy a nationwide 4G network.
Undeterred by its public takeover target Clearwire moving closer to a tie-up with rival suitor Sprint Nextel, Dish said it may use proceeds from the debt offering for “wireless and spectrum-related strategic transactions”.
Originally outlining plans for a US$1bn bond, it issued US$1.1bn of 5.125% senior notes due 2020, and US$1.2bn of 4.250% senior notes due 2018.
Moody’s gave the debt a Ba2 rating, and the offering is expected to close on 5 April. Deutsche Bank is initial purchaser of the notes.
The DTH firm requires a terrestrial partner to build out a network that will use repurposed satellite spectrum to provide mobile services.
It had sought to secure this partner in scuppering Sprint’s bid for Clearwire, a wireless operator that provides 4G across roughly 80 cities, with a higher offer. However, Dish’s offer was tied to a number of conditions, and it was recently put in the shade as Clearwire began accepting financing instalments from Sprint.
In late March Clearwire said it will draw on US$80m of financing from Sprint for the second month running, which is part of the latter’s bid to acquire the company.
But elsewhere in the US telecoms market a new opportunity for Dish may be on the horizon in MetroPCS, the fifth-largest mobile operator in the country, which is the subject of a Deutsche Telekom-backed takeover.
Despite that takeover plan recently clearing its last regulatory hurdle, there has been growing opposition amongst MetroPCS’s shareholders, some of which have criticised the deal as unfair.
Last Thursday Glass Lewis became the second proxy firm in the space of a week to recommend MetroPCS shareholders vote against the move.
Within its reasoning, the firm said more should have been done to capitalise on the apparent interest of other parties for the asset, including Dish.
It said the company’s board should have publicly put the operator up for sale before agreeing to the deal, and that the US$150m termination fee placed on it had discouraged any subsequent rival bids.
Analysts have previously suggested that it is unlikely Deutsche Telekom will improve the terms of its offer.
MetroPCS shareholders are set to vote on the takeover plan on 12 April.
