DirecTV is selling $3.1 billion of junk bonds to help back its split from AT&T Inc.
An investor call for the six-year secured bonds is set for 10:30 a.m. in New York on Monday, and the bonds are set to price on Thursday. The proceeds, along with cash from the company’s term facility, will be used to help refinance the debt owed to AT&T.
AT&T announced it would spin off long-struggling DirecTV earlier this year, setting up a joint venture with private equity firm TPG to run DirecTV and AT&T’s other pay-TV operations. The private equity firm is acquiring a 30% stake in the venture. The deal valued the company at about $16 billion, a fraction of what AT&T paid in 2015.
DirecTV is also marketing a $3.1 billion leveraged loan to back its split from AT&T, offering yields higher than usual for its rating category. Lender commitments are due on Thursday for that debt.
Credit Suisse Group AG, Bank of America Corp., Deutsche Bank AG, HSBC Holdings Plc, Bank of Montreal, Goldman Sachs Group Inc., Mizuho Financial Group Inc., Mitsubishi UFJ Financial Group Inc., UBS Group AG, Barclays Plc and Jefferies Financial Group Inc. are leading the bond sale.
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