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DISH Network’s bonds continued to tick lower with the company launching an exchange offer for about $4.9bn of convertible debt for new bonds. This comes just a couple of days after DISH’s asset transfer that upset bondholders. The exchange offer would allow its convertible bonds holders to swap their notes for new secured bonds with a coupon of 10%, backed by wireless spectrum worth about $9bn. DISH is also asking its convertible debtholders to agree to remove almost all investor protections in the existing notes. The old convertible notes would be swapped for the new notes at about 51-61 cents on the dollar. The offer is made with an intention to pare its $20bn debt load, notes Bloomberg. Last week, DISH transferred a handful of its wireless spectrum licenses and into a new legal entity under EchoStar with whom they recently completed a merger.
DISH’s 7.75% 2026s were down 2 points to 56.5 cents on the dollar and its 5.125% 2029s were down 1 point to 37.25 cents on the dollar.
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