Charlie Ergen’s Dish Network has priced an offering for $2 billion-worth of bonds.
Dish, in connection with the offering, has also granted the initial purchaser a 30-day option to purchase up to an additional $300 million in aggregate principal amount of the Notes. The Notes will mature on December 15th 2025.
The Notes will not bear regular interest, and the principal amount of the Notes will not accrete. The Notes will be convertible under certain circumstances and during certain periods into DISH Network’s Class A Common Stock at an initial conversion rate of 24.4123 shares of Dish Network’s Class A Common Stock per $1,000 principal amount of Notes, equivalent to an initial conversion price of approximately $40.96 per share, which represents an approximately 30 per cent conversion premium over the last reported sale price of $31.51 per share of Dish Network’s Class A Common Stock on The Nasdaq Global Select Market on December 16th 2020.
Dish says: “Upon any conversion, Dish Network will settle its conversion obligation in cash, shares of its Class A Common Stock or a combination of cash and shares of its Class A Common Stock, at its election. The net proceeds of the offering are intended to be used for general corporate purposes, including 5G network buildout costs. The offering is expected to close on December 21st 2020 subject to customary conditions.”