$750 million senior notes offering (1 Viewer)

d777jj

Thread Starter
SatelliteGuys Family
Pub Member / Supporter
Nov 8, 2006
103
1
They don't believe that Dish can continue to grow at a acceptable rate over the term of the notes.
It also means higher interest on the notes, which means less profits to the shareholders.
 

scimini

SatelliteGuys Family
Apr 7, 2008
66
0
what does this mean anyway?

They increased their corporate line of credit. Think of it as a credit limit increase on your credit card.

Their credit rating is stable, however the rating is BB-. Think of it as APR rate on your credit card staying the same but it is a high interest rate.

So in easy terms, they have a credit line of 750 million and a high interest rate costing them more money to borrow.
 

mike123abc

Too many cables
Supporting Founder
Sep 25, 2003
23,505
2,162
Norman, OK
Actually Dish got a lower interest rate than originally expected and expanded the debt offering to $750 million from the orignal note offering of $500 million.

To put this in perspective it is about 3-5 satellites worth of money (including launch costs).

Over Dish's existance they have routinely borrowed billions, and have repaid billions. Dish (like other providers including DIRECTV and Cable) has large cash flow. They get a ton of money each month from subs, letting them repay loans over time.

At the end of last quarter Dish was sitting on about $1 billion in cash and Echostar was sitting on about 650 million.
 

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