By Paul A. Harris
St. Louis, Sept. 28 - EchoStar DBS Corp. priced a $500 million issue of 7% seven-year senior notes (Ba3/BB-) at 97.983 to yield 7 3/8% on Thursday, according to an informed source.
The yield came on the wide end of the 7¼% area price talk.
The company came with a quick-to-market transaction with the intention of selling either the seven-year bullet notes or else to sell 10-year bullets, based upon demand, the source said. Although the 10-year notes were ultimately abandoned they had been talked at the 7½% area.
JP Morgan and Deutsche Bank Securities were joint bookrunners for the Rule 144A and Regulation S issue.
Proceeds will be used to refinance the company's floating-rate notes.
EchoStar is an Englewood, Colo.-based satellite TV company that operates DISH Network.
Issuer: | EchoStar DBS Corp.
|
Amount: | $500 million
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Maturity: | Oct. 1, 2013
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Security description: | Senior notes
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Bookrunners: | JP Morgan, Deutsche Bank Securities
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Coupon: | 7%
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Price: | 97.983
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Yield: | 7 3/8%
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Spread: | 280 bps
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Call protection: | Non-callable
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Trade date: | Sept. 28
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Settlement date: | Oct. 18
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Ratings: | Moody's: Ba3
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| Standard & Poor's: BB-
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Distribution: | Rule 144A and Regulation S
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Price talk: | 7¼% area
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