DISH offering upsized again; $5.25 billion two-part bullet to price on Wednesday

By Paul A. Harris

Portland, Ore., Nov. 10 – DISH Network Corp. and DISH DBS Corp. upsized their two-part offering of senior secured bullet notes (Ba3/B+) twice on Wednesday morning, according to market sources.

By adding an additional $250 million to the shorter-maturity tranche, the issuers lifted the overall deal size to $5.25 billion from $5 billion. That upsize follows an earlier increase from $4 billion, which was the deal's announced size.

An upsized $2.75 billion tranche of five-year notes launched at par to yield 5¼%, in the middle of yield talk in the 5¼% area and inside of initial guidance in the mid-5% area. The tranche size increased from $2 billion.

A $2.5 billion tranche of seven-year notes launched at par to yield 5¾%, in the middle of yield talk in the 5¾% area and on top of initial guidance that had the seven-year notes coming 50 basis points behind the five-year notes.

The deal was heard to be playing to slightly less than $10 billion of orders across both tranches on Wednesday morning, a trader said.

Final terms are expected later on Wednesday.

Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the joint bookrunners for the Rule 144A and Regulation S for life deal.

The Englewood, Colo., satellite broadcasting company plans to use the proceeds to make an intercompany loan to DISH Network in order to finance the potential purchase of wireless spectrum licenses and for general corporate purposes, including the buildout of wireless infrastructure.

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