Hughes Network Systems $375 million credit facility likely mid-to-late January business

By Sara Rosenberg

New York, Dec. 17 - Hughes Network Systems LLC nailed down timing a bit on the launch of its $375 million credit facility as a bank meeting is now anticipated to take place in mid-to-late January, according to a market source. Previously, the deal was expected to launch some time next year.

The facility will contain $300 million in term loan debt and a $75 million revolver.

JPMorgan and Bear Stearns are the lead banks on the deal, with JPMorgan the left lead.

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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