Charlie Ergen’s move into cellular telephony is proving to be costly.
A $1 billion debt offering of Senior Notes by Dish Network has been priced at 7.35 per cent. The debt is due for repayment by 2028.
As a comparison last week SES offered a €400 million Eurobond, also due for repayment in 2028, and which was priced at just 2 per cent.
Dish Network is in the process of buying Sprint’s Boost Mobile business from T-Mobile in order to build a 4th US national wireless service. The purchase is likely to close by July 1st.
Once the deal goes through Ergen/Dish will have 7-years of access to the (former) Sprint’s assets including Boost Mobile, Virgin Mobile and Sprint Prepaid brands and services.