DISH Network Announces Secured Debt Offering

Rhea-AI Summary

DISH Network Corporation announced plans to offer approximately $4 billion of senior secured notes through its subsidiary DISH DBS Corporation. The proceeds will finance the potential purchase of wireless spectrum licenses and support general corporate purposes, including wireless infrastructure buildout. The notes, sold to qualified institutional buyers, will be subordinated to existing unsecured notes. The offering is subject to market conditions, regulatory exemptions, and does not serve as a solicitation to sell.

Positive

• Plans to raise approximately $4 billion for wireless spectrum licenses and infrastructure buildout.
• Proceeds secured by cash and interest in acquired spectrum licenses.

Negative

• Notes are subordinated to existing unsecured notes, indicating higher risk for new investors.
• Offering not registered under the Securities Act, limiting market access.

ENGLEWOOD, Colo., Nov. 8, 2021 /PRNewswire/ -- DISH Network Corporation ("DISH Network") (NASDAQ: DISH) today announced that its subsidiary, DISH DBS Corporation ("DISH DBS"), plans to offer, subject to market and other conditions, approximately $4 billion aggregate principal amount of its senior secured notes. The net proceeds of the offering are intended to be used to make an intercompany loan to DISH Network in order to finance the potential purchase of wireless spectrum licenses and for general corporate purposes, including the buildout of wireless infrastructure. The intercompany loan will be secured by (i) the cash proceeds of the loan and (ii) an interest in any wireless spectrum licenses acquired using such proceeds.  In certain cases, DISH Network wireless spectrum licenses (valued based upon a third-party valuation) may be substituted for the collateral. The intercompany loan will not be included as collateral for the notes, and the notes will be subordinated to DISH DBS's existing and certain future unsecured notes with respect to certain realizations under the intercompany loan and any collateral pledged as security for the intercompany loan.

The notes will only be offered and sold to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and in offshore transactions in accordance with Regulation S under the Securities Act.  The notes being offered have not been registered under the Securities Act or the securities laws of any other jurisdiction.  The notes may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.  This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the notes; nor shall there be any sale of these notes in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Except for historical information contained herein, the matters set forth in this press release are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in DISH Network's and DISH DBS' Disclosure Regarding Forward-Looking Statements included in their recent filings with the Securities and Exchange Commission, including their annual reports on Form 10-K and quarterly reports on Form 10-Q. The forward-looking statements speak only as of the date made, and DISH Network and DISH DBS expressly disclaim any obligation to update these forward-looking statements.

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SOURCE DISH Network Corporation

FAQ

What is DISH Network's recent financial announcement?

DISH Network announced a plan to offer approximately $4 billion in senior secured notes.

What will DISH Network do with the proceeds from the notes?

The proceeds will be used for purchasing wireless spectrum licenses and general corporate purposes.

Who can buy the senior secured notes from DISH Network?

The notes will only be sold to qualified institutional buyers.

What are the risks related to DISH Network's senior secured notes?

The notes are subordinated to existing unsecured notes, indicating a higher risk for new investors.

Will the senior secured notes be registered under the Securities Act?

No, the notes are not registered under the Securities Act, limiting their marketability.