Dish Network lining up bond financing for Sprint bid

05/14/2013 9:44 PM

05/20/2014 10:44 AM

Dish Network Corp., the satellite TV company vying with SoftBank Corp. to acquire Overland Park-based Sprint Nextel Corp., is offering $2.5 billion of debt to help finance the proposed deal.

The company may sell four- and 10-year bonds Tuesday or Wednesday. The proceeds from the senior notes sale will be placed into escrow and would be released to help fund the cash portion of a Sprint acquisition, the Englewood, Colo. company said Tuesday in a regulatory filing. Dish will redeem the debt if a deal doesn’t materialize, it said.

The offering comes a month after SoftBank sold $3.3 billion of bonds denominated in dollars and euros to help fund its $20.1 billion bid for Sprint, Bloomberg data show.

Barclays Plc, Jefferies Group LLC, Macquarie Group Ltd. and Royal Bank of Canada are managing the offering.

The company is trying to win over Sprint’s board, which is concerned about the debt that would be placed on the merged company and has doubts about Dish’s estimate of $11 billion in cost savings.

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