Moody’s assigns DISH convertibles B1

Moody’s Investors Service said it assigned DISH Network Corp.’s proposed $2 billion of senior unsecured convertible notes a B1 rating.

DISH’s B1 corporate family rating, Ba3-PD probability of default rating, B1 ratings on the company’s senior unsecured convertibles notes and SGL-2 speculative grade liquidity rating are unchanged. Additionally, the ratings of DISH DBS Corp., a wholly-owned subsidiary of DISH Network, including its B2 CFR, B1-PD PDR, and B2 ratings on its senior unsecured notes are unchanged.

The new convertible notes are expected to be pari passu with DISH’s existing convertible notes. The proceeds are expected to be used for general corporate purposes, including 5G network buildout costs.

The convertibles offering brings DISH’s pro forma leverage to about 4.6x, up from its 4.1x leverage as of the last 12 months (LTM) ending on Sept. 30, which remains below the 6x sustained leverage limit for its B1 CFR, Moody’s said.

The outlook is stable.

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