DISH Network Places Offering of $5,250,000,000 in Senior Secured Notes

Rhea-AI Summary

DISH Network Corporation (NASDAQ: DISH) announced the pricing of $2.75 billion of its 5.25% Senior Secured Notes due 2026 and $2.5 billion of its 5.75% Senior Secured Notes due 2028. The net proceeds will fund an intercompany loan to DISH Network for acquiring wireless spectrum licenses and general corporate purposes, including wireless infrastructure buildout. The offering is expected to close on November 26, 2021, subject to customary conditions. The Notes will be offered solely to qualified institutional buyers and have not been registered under the Securities Act.

Positive

• Successfully priced $2.75 billion of 5.25% Senior Secured Notes and $2.5 billion of 5.75% Senior Secured Notes.
• Funds raised are intended for strategic investments in wireless spectrum licenses and infrastructure.

Negative

• Notes are subordinated to existing and some future unsecured notes, increasing financial risk.
• Offering restricted to qualified institutional buyers, limiting broader market access.

ENGLEWOOD, Colo., Nov. 10, 2021 /PRNewswire/ -- DISH Network Corporation ("DISH Network") (NASDAQ: DISH) today announced that its subsidiary, DISH DBS Corporation ("DISH DBS"), priced an offering of $2,750,000,000 aggregate principal amount of its 5.25% Senior Secured Notes due 2026 (the "2026 Notes") and $2,500,000,000 aggregate principal amount of its 5.75% Senior Secured Notes due 2028 (the "2028 Notes" and, together with the 2026 Notes, the "Notes"). The 2026 Notes will be issued at an issue price of 100% of the principal amount and the 2028 Notes will be issued at an issue price of 100% of the principal amount. 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 offering is expected to close on November 26, 2021 subject to customary conditions.

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 the total amount raised by DISH Network's recent bond offering?

DISH Network raised a total of $5.25 billion through its recent bond offering.

What are the interest rates on DISH Network's senior secured notes?

The senior secured notes have interest rates of 5.25% due in 2026 and 5.75% due in 2028.

When is the closing date for DISH Network's bond offering?

The closing date for DISH Network's bond offering is expected to be November 26, 2021.

What will DISH Network do with the proceeds from the bond offering?

The proceeds will be used for an intercompany loan to acquire wireless spectrum licenses and for general corporate purposes.

Who can purchase DISH Network's senior secured notes?

The notes will be offered only to qualified institutional buyers under Rule 144A of the Securities Act.