DirecTV to launch $1.55 billion facility on Thursday

By Sara Rosenberg

New York, Feb. 10 - DirecTV Holdings LLC is expected to hold a bank meeting for a new $1.55 billion credit facility on Thursday, according to a syndicate source. Deutsche Bank, Bank of America, Credit Suisse First Boston, Goldman Sachs and Salomon Smith Barney are the lead banks on the deal.

The loan consists of a $250 million five-year revolver with an interest rate of Libor plus 350 basis points, a $500 million five-year term loan A with an interest rate of Libor plus 350 basis points and an $800 million seven-year term loan B with an interest rate of Libor plus 375 basis points, the syndicate source said.

Security for the loan is substantially all of DirecTV's assets.

In addition to the bank debt, the company will begin a roadshow on Wednesday for $1.4 billion senior unsecured notes due 2013.

Both the bank debt and the notes offering are expected to close by early March, according to a news release.

DirecTV, a wholly owned subsidiary of Hughes Electronics Corp., will use the proceeds from the sale of the senior notes and the term loans to repay outstanding indebtedness under Hughes existing credit facilities, to fund Hughes' business plan through projected cash flow breakeven and for Hughes' other corporate purposes, the release said. Hughes' existing $1.8 billion senior secured credit facilities will terminate upon the repayment.

DirecTV is an El Segundo, Calif. digital satellite television service provider.

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