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Dish Network Raises $1.5 Billion in Sale of 10-Year, 5% Notes

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Dec. 19 (Bloomberg) -- Dish Network Corp. raised $1.5 billion in a sale of 10-year bonds after increasing the size of the offering by 50 percent.

The 5 percent notes from the Dish DBS Corp. unit of the second-largest U.S. satellite-television provider yield 319 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. The deal was marketed earlier today at $1 billion. A basis point is 0.01 percentage point.

Proceeds will be used for general corporate purposes that may include spectrum deals, the Englewood, Colorado-based company said today in a regulatory filing.

“Given the risk that DISH DBS will see leverage soar in support of a wireless initiative at parent DISH Network, we would only be interested in DISH DBS bonds if they priced more like a BB credit, or north of +350 basis points,” Michael Hodel, an analyst at Morningstar Inc., wrote in a research note today.

Dish previously sold debt in September, including $2 billion of 5.875 percent, 10-year debentures, Bloomberg data show. Those notes traded at 111 cents on the dollar yesterday, the highest since they were issued, to yield 4.45 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Deutsche Bank AG managed today’s sale, Bloomberg data show. The bonds are rated Ba2, two levels below investment grade, by Moody’s Investors Service, and one step lower at BB- at Standard & Poor’s.

DirecTV is the largest satellite-TV provider.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story Alan Goldstein at agoldstein5@bloomberg.net

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