DirecTV Selling $6.2 Billion of Debt as Part of AT&T Split

A DirecTV satellite dish is mounted outside a home in Caracas, Venezuela. (Photographer: Matias Delacroix/Bloomberg)

DirecTV Selling $6.2 Billion of Debt as Part of AT&T Split


DirecTV is selling $6.2 billion of debt via the high-yield and leveraged loan markets to help finance its split from AT&T Inc., according to a person with knowledge of the matter.

The television provider is marketing $3.1 billion of six-year secured bonds that are set to price Thursday and may yield around 6% to 6.5%, said the person, who asked not to be identified as the details are private. It’s also looking to sell a $3.1 billion six-year leveraged loan that pays about 5.25 percentage points more than the London interbank offered rate. Lender commitments are now due Wednesday after the deal was accelerated.

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 the television provider and AT&T’s other pay-TV operations. The deal valued the company at about $16 billion, with TPG taking a 30% stake. Proceeds from the bond sale, along with cash from a term facility, will be used to pay down intracompany debt owed to AT&T as part of the split.

Read more: DirecTV is marketing $3.1 billion of loans to back AT&T-TPG deal

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, the person said.

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