DISH Network Places $1 Billion in Convertible Notes (1 Viewer)

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DISH Network Places $1 Billion in Convertible Notes



ENGLEWOOD, Colo.--(BUSINESS WIRE)-- DISH Network Corporation ("DISH Network") (NASDAQ: DISH) today announced that on March 10, 2017, it had agreed to issue and sell $1 billion aggregate principal amount of 2.375% Convertible Notes due 2024 (the "Notes") to a group of institutional investors.

The Notes will mature on March 15, 2024. Interest on the Notes will be paid on March 15 and September 15 of each year, commencing on September 15, 2017. 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 12.1630 shares of DISH Network's Class A Common Stock per $1,000 principal amount of Notes, equivalent to an initial conversion price of approximately $82.22 per share, which represents an approximately 32.5% conversion premium over the last reported sale price of $62.05 per share of DISH Network's Class A Common Stock on The NASDAQ Global Select Market on March 10, 2017. 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 placement are intended to be used for strategic transactions, which may include wireless and spectrum-related strategic transactions, and for other general corporate purposes.

The issue and sale of the Notes is expected to close on March 17, 2017 subject to customary conditions.

The Notes will only be offered and sold to institutional accredited investors that are also qualified institutional buyers on a private placement basis pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"). The Notes and shares of DISH Network's Class A Common Stock issuable upon the conversion of the Notes, if any, have not been and are not intended to be registered under the Securities Act or the securities laws of any other jurisdiction. The Notes may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Notes; nor shall there be any sale of these Notes in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Except for historical information contained herein, the matters set forth in this press release are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in DISH Network's Disclosure Regarding Forward-Looking Statements included in its recent filings with the Securities and Exchange Commission, including its annual report on Form 10-K. The forward-looking statements speak only as of the date made, and DISH Network expressly disclaims any obligation to update these forward-looking statements.

 

Tampa8

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So is it DISH that is buying someone not someone buying DISH? I don't have the knowledge to know exactly what the connection is but the past move of consolidating assets and now this means to me something is going to happen....
 

TheKrell

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Tampa8

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Yespage

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Dish just isn't big enough to absorb a Telecom, so either buying something related to cellular infrastructure or a build out of infrastructure. But honestly, how much would it cost to launch a wireless service? To put out that much money, they'd need a pretty well developed and guaranteed infrastructure roll out.
 

DishSubLA

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I read it as Dish is going to go it alone and build out for the spectrum they bought a long time ago. They are under a deadline to begin the process of implementation and use of those frequencies or Dish loses them with nothing to show for all the money they spent at auction. Of course, this does not prevent new partners along the way, or selling or leasing some of the spectrum Dish may decide not to use for its plans. $1billion debt is peanuts to almost any potential, far more deep pocketed, buyer like Verizon, as one example. Dish has to get moving on its wireless plans or else, and now they are raising the money to, finally, do it. Nothing earth shattering and nothing to really affect a M&A as this action retains the value of Dish to a buyer in that Dish plans to meet the deadlines, and therefore, keep possetion of the spectrum almost any buyer would find enticing.
 
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Yespage

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I'm curious as to their plans. According to filings noted in another thread, they have plans to roll out a system, but note that 5G will be standardized by 2020. Can you roll out tower infrastructure for a system that isn't even standardized yet?
 

ncted

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If Charlie was smart, he would have included AWS-4 and 700MHz Block E radios in all the Hopper 3s. Then he could use everyone's local ISP as backhaul. All he would need is a FPGA chip on board to flash with new firmware once 5G standard is set. IoT stuff doesn't take that much bandwidth. That way, he uses his spectrum without incurring any costs for power or data. ;) ;)
 
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Tampa8

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If Charlie was smart, he would have included AWS-4 and 700MHz Block E radios in all the Hopper 3s. Then he could use everyone's local ISP as backhaul. All he would need is a FPGA chip on board to flash with new firmware once 5G standard is set. IoT stuff doesn't take that much bandwidth. That way, he uses his spectrum without incurring any costs for power or data. ;) ;)

He is apparently very smart, and including that to add to the cost of production for maybe, possible use makes no sense. Beyond that the 700MZ block is fraught with possible problems. The upper block has been contested as being promised to be shared with public service anytime it is employed. In addition third party devices must be allowed on the network. The lower block is really meant for one way communication. Often now it is being used or sold to utilities.
 
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DishSubLA

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I really don't know what the ultimate plan is, but I seem to read in the bits and pieces I've come across over time is that some of that spectrum that Dish has may be used for ISP services in rural areas, and that dovetails into Hughes Net business that is still growing and could grow even more if they can get services to those who have no option but satellite for ISP. Some of it may be used by Dish for a TV Everywhere service that can be linked like a component of service (certain phones with the right hardware to access the proper frequencies) as part of the legacy wireless companies services without using those wireless services infrastructure. Certaily not AT&T (they own DirecTV), but the remaining wireless companies including MVNO's might find a high quality, robust TV streaming at an additional fixed cost that does not chip away at the data allowance of a phone user today, very appealing for its business.

In a fantasty universe, I would have liked to have seen Amazon team with Dish by Amazon providing those really inexpensive, but highly capable and quality phones, and Dish providing the spectrum, or even Amazon just buying the spectrum and enter and disrupt the current wireless business by starting their own wireless phone service with its own phones or even clones/rebranded versions of the Moto G4, as one example, and Amazon's retail business subsidizing the wireless business (as its tablets do) resulting in reasonable wireless phone rates.
 

DWS44

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If Charlie was smart, he would have included AWS-4 and 700MHz Block E radios in all the Hopper 3s.

Heck, by 2020 we'll be on the Hopper 5 or Hopper 6 and cussing these slow and worn out Hopper 3s :D

(well... except Krell and dare2be, who'll still be evangelizing the dozen remaining ViP receivers that are still functional in 2020 :p)
 

Claude Greiner

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Dish will do nothing with their spectrum.

I think they are too chicken to make the gamble and go at it alone themselves.

They are not big enough to buy another telecom provider out.

Nobody wants to partner with them due to their bad reputation on the street.

Charlie is not wanting to give up control and sell the company outright.
 

Juan

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Dish will do nothing with their spectrum.

I think they are too chicken to make the gamble and go at it alone themselves.

They are not big enough to buy another telecom provider out.

Nobody wants to partner with them due to their bad reputation on the street.

Charlie is not wanting to give up control and sell the company outright.
He has to retire someday

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Yespage

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Heck, by 2020 we'll be on the Hopper 5 or Hopper 6 and cussing these slow and worn out Hopper 3s :D

(well... except Krell and dare2be, who'll still be evangelizing the dozen remaining ViP receivers that are still functional in 2020 :p)
At $7 a month, oh yeah! VIP 722k for the win! That is $3.50 a tv screen compared to what $15 for one tv screen. That means the 722K is like 4+ times better than the Hoppah. SAD! :D
 
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Stargazer

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Dish has its whole subscriber base to use as repeaters for a cellular/tv network (mesh network). This could all become one big mesh.

They could partner with companies like Frontier to use their routers or upgrade them to use as hot spots for their new service in addition to other phone companies and their satellite dishes outside which could be connected to additional equipment.

Even in rural areas, what would be the furthest customer away from each other using Dish? A mile or less? 700 mhz should work easily in areas a mile or less from the cellular devices.
 
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Claude Greiner

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Dish has its whole subscriber base to use as repeaters for a cellular/tv network (mesh network). This could all become one big mesh.

They could partner with companies like Frontier to use their routers or upgrade them to use as hot spots for their new service in addition to other phone companies and their satellite dishes outside which could be connected to additional equipment.

Even in rural areas, what would be the furthest customer away from each other using Dish? A mile or less? 700 mhz should work easily in areas a mile or less from the cellular devices.

Yea but you can't count on dish customers being around a very long time. They do churn at the rate of 18-25% per year.
 

HobbyTalk

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Yea but you can't count on dish customers being around a very long time. They do churn at the rate of 18-25% per year.
That would depend on the deal they would get for hosting a repeater. Would you churm if you were getting $20 50M service to switch to $40 10M service from CenturyLink? Plus any discounts that might throw in for TV.

Right now we know way too little to even guess what will, or will not, develop.
 

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