Dish Planning to Issue $2.5 Billion of Bonds for Sprint Proposal

Dish Network Corp. (DISH), the satellite TV company vying with SoftBank Corp. (9984) to acquire Sprint Nextel Corp. (S), is offering $2.5 billion of debt to help finance the proposed deal.

The company may sell four- and 10-year bonds today or tomorrow, according to a person familiar with the transaction. The proceeds from the senior notes sale will be placed into escrow and would be released to help fund the cash portion of a Sprint acquisition, the Englewood, Colorado-based company said today in a regulatory filing. Dish will redeem the debt if a deal doesn’t materialize, it said.

The offering comes a month after SoftBank sold $3.3 billion of bonds denominated in dollars and euros to help fund its $20.1 billion bid for Sprint, Bloomberg data show.

The Dish bonds may be rated Ba2 by Moody’s Investors Service, said the person, who asked not to be identified because terms aren’t set. Barclays Plc, Jefferies Group LLC, Macquarie Group Ltd. and Royal Bank of Canada are managing the offering.

The company is trying to win over Sprint’s board, which is concerned about the debt that would be placed on the merged company and has doubts about Dish’s estimate of $11 billion in cost savings, people familiar with the situation said last week.

To contact the reporter on this story: Sarika Gangar in New York at

To contact the editor responsible for this story Alan Goldstein at

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