$750 million senior notes offering

[d777jj]

S&P rates EchoStar notes offering; affirms non-investment grade ratings on parent Dish Network

S&P assigns rating to EchoStar notes offering

 

[Rey]

what does this mean anyway?

 

[Curtis0620]

what does this mean anyway?

They need money to pay TiVo.

 

[d777jj]

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]

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.

 

[Slamminc11]

They need money to pay TiVo.

Wrong, that money has been in the bank since the vidict came back a couple years ago. Nice try though.

 

[mike123abc]

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.