Hughes Network Systems anticipated $375 million credit facility to launch next year

By Sara Rosenberg

New York, Dec. 10 - Hughes Network Systems LLC expects to come to market with $375 million in debt financing some time next year that will contain a $75 million revolver, a company spokesman told Prospect News Friday.

The remaining $300 million of debt financing "will depend on [the] market prior to close" but will "likely [be a] syndicated bank term loan," the spokesman added.

JPMorgan and Bear Stearns are the lead banks on the deal.

The debt will be used to help fund the transfer of Hughes Network Systems' assets to Hughes Network Systems LLC, a newly formed company that will be 50% owned by SkyTerra Communications Inc. and 50% owned by The DirecTV Group. Hughes Network Systems is currently a wholly owned subsidiary of DirecTV.

The debt will not be guaranteed by either SkyTerra or DirecTV.

The transaction, which is expected to close in the first half of 2005, is subject to regulatory approvals, receipt of financing and other closing conditions.

Hughes Network Systems LLC is a provider of broadband satellite networks and services.

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