US DTH giant Dish Network has raised US$2bn through the issue of new senior notes due 2024. Proceeds will be used to refinance existing debt as well as for general corporate purposes.
The bond, issued through the group’s DISH DBS Corporation…
US DTH giant Dish Network has raised US$2bn through the issue of new senior notes due 2024. Proceeds will be used to refinance existing debt as well as for general corporate purposes.
The bond, issued through the group’s DISH DBS Corporation subsidiary, carries a 5.875% coupon and priced at par. The transaction is set to close on 20 November.
The debt was assigned a BB- rating by Fitch, which said its outlook remains negative for the satellite broadcaster. Dish had about US$13.4bn in outstanding debt as of 30 September 2014 and a leverage of around 4.7x for the last 12 months.
“Drivers of the negative outlook include the lack of visibility into Dish’s wireless strategy, and the potential capital requirements and execution risk associated with that strategy,” said the ratings agency.
The company has been looking to acquire, partner or strike a network-sharing deal with another wireless carrier to launch LTE services with its satellite spectrum. It also plans to take part in the upcoming auction of AWS-3 spectrum to add to its portfolio of frequencies.
“Event risks remain elevated as the company contemplates additional acquisitions of spectrum or assets to support the wireless strategy,” said Fitch.
“The strategic importance of a wireless broadband service option has not diminished and, as such, Fitch expects Dish will likely continue its efforts to engage an existing national wireless service provider.”
Dish chairman Charlie Ergen reportedly approached Deutsche Telekom in September to say he was open to buying its wireless operator T-Mobile US in the coming months. Last year Dish tried to acquire T-mobile’s larger rival Sprint, which was eventually bought by Japanese telco Softbank.
Ergen, meanwhile, could be set to take a 60% stake in LightSquared under the troubled US satellite/terrestrial venture’s latest restructuring plan.
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