By Paul A. Harris
St. Louis, May 20 - Hughes Network Systems, LLC and HNS Finance Corp. priced a $150 million issue of notes mirroring its 9½% senior notes due April 15, 2014 at 90.935 to yield 12% on Wednesday, according to an informed source.
The quickly shopped deal came tight to the 12% to 12¼% price talk.
J.P. Morgan Securities Inc. ran the books.
Proceeds will be used for general corporate purposes, which could include working capital, corporate development opportunities (which may include acquisitions) and opportunistic satellite fleet expansion.
The issuer is a Germantown, Md.-based provider of broadband satellite networks and services for enterprises, governments, small businesses and consumers.
| Issuers: | Hughes Network Systems, LLC and HNS Finance Corp.
|
| Face amount: | $150 million
|
| Proceeds: | $136.403 million (approximate)
|
| Maturity: | April 15, 2014
|
| Security description: | Notes mirroring the 9½% senior notes due April 15, 2014
|
| Bookrunner: | J.P. Morgan Securities Inc.
|
| Coupon: | 9½%
|
| Price: | 90.935
|
| Yield: | 12%
|
| Spread: | 994 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until April 15, 2010 then callable at 104.75, 102.375, par on and after April 15, 2012
|
| Change-of-control put: | 101%
|
| Trade date: | May 20
|
| Settlement date: | May 27 with accrued interest
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 12% to 12¼%
|
| Original issue: | $450 million priced at par on April 6, 2006
|
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