DISH Network Corporation (NASDAQ: DISH) has agreed to issue and sell USD 1bn aggregate principal amount of 2.375% Convertible Notes due 2024 (the “Notes”) to a group of institutional investors, the company said.
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 USD 1,000 principal amount of Notes, equivalent to an initial conversion price of approximately USD 82.22 per share, which represents an approximately 32.5% conversion premium over the last reported sale price of USD 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.