Hughes Network Systems to sell $325 million of eight-year notes, obtain $50 million loan

By Paul A. Harris and Sara Rosenberg

St. Louis, April 4 - Hughes Network Systems LLC plans to sell $325 million of eight-year senior unsecured notes (B1), according to a market source.

The company will also obtain a $50 million revolving credit facility.

JP Morgan and Bear Stearns & Co. will lead the note offering. Timing is yet to be determined.

Originally it was thought that the company would get a $375 million credit facility consisting of a $300 million term loan and a $75 million revolver, but financing plans shifted toward the high-yield market.

Proceeds 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 a Germantown, Md.-based provider of broadband satellite networks and services.

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