Dish to Redeem $2.6 Billion Debt Sold in May as Sprint Bid Fails
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The company will redeem on June 24 its $1.25 billion of 5 percent bonds due May 2017 at 100 cents on the dollar and its $1.35 billion of 6.25 percent notes due May 2023 at 101 cents on the dollar, plus accrued and unpaid interest, the Englewood, Colorado-based company said today in a regulatory filing.
The company was required to redeem the securities if it failed in its bid for Sprint, based on terms of the bond sale completed on May 15. Investors negotiated during the marketing period to increase the redemption price on the 10-year bonds to 101 cents from par during the first six months.
The 2017 bonds were quoted as high as 100.5 cents on the dollar to yield 4.87 percent on May 28 before falling to 100 cents, yielding 5 percent, yesterday, according to prices compiled by Bloomberg.
The 2023 securities were quoted as a low as 99.2 cents to yield 6.36 percent on June 6 before rising to a high of 100.8 cents, yielding 6.14 percent, on June 19, Bloomberg prices show. They were quoted at 100.5 cents to yield 6.18 percent yesterday.
Dish did not specify its reasons for abandoning its Sprint bid, according to the filing, and is making way for SoftBank Corp. (9984) to acquire the third-biggest U.S wireless carrier.
SoftBank sold $3.3 billion of bonds denominated in dollars and euros to help fund its Sprint bid on April 18, according to data compiled by Bloomberg. The sale was not contingent on the deal’s closing.