Demand for Dish Network debt appears to be strong enough for the company to more than double its borrowing plan: It says this morning it’s selling two groups of senior notes in private placements for $2.3B, up from the $1B plan it announced yesterday. The satellite company is selling $1.1B of notes due in 2020 that will pay 5.125% a year in interest. In addition, it’s borrowing $1.2B from notes that mature in 2018 and pay 4.250%. The offerings, expected to close on Friday, might be used for “wireless and spectrum-related strategic transactions,” the company says, in addition to the boilerplate “general corporate purposes.” Dish chairman Charlie Ergen has been amassing spectrum rights to launch his own wireless broadband network. Companies across all industries have been taking on debt to take advantage of today’s low interest rates — and investor demand for relatively safe bonds and notes that pay more than they’d get from government instruments. Last year corporations worldwide sold about $4 trillion in new debt, topping the previous high of $3.89 trillion in 2009.
Dish Network Ups Borrowing Plan To $2.3B
What's Hot on Deadline
Netflix Dates First Feature Film Slate With Idris Elba, Cary Fukunaga, Adam Sandler, Harvey Weinstein, Paul Reubens & Judd Apatow