DISH Network Places $1 Billion in Convertible Notes
March 13 2017 - 6:05AM
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170313005251/en/
DISH Network CorporationMedia:Bob Toevs,
303-723-2010bob.toevs@dish.com@DISHNewsorInvestors:Jason Kiser,
303-723-2210jason.kiser@dish.com
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