EL SEGUNDO, Calif., May 07, 2008 (BUSINESS WIRE) -- DIRECTV Holdings LLC and DIRECTV Financing Co., Inc. (collectively, "DIRECTV") (NASDAQ:DTV) announced today that they intend to privately offer up to $1.350 billion principal amount of senior notes due 2016. An additional $150 million principal amount of senior notes due 2016 may be sold pursuant to a 30-day over-allotment option. Concurrently with the offering, DIRECTV intends to raise up to $1.0 billion in the form of an incremental term loan under its existing senior secured credit facility.
DIRECTV plans to use the net proceeds from this offering for general corporate purposes, including to pay a dividend to its parent, DIRECTV Group, which will be available to be used by it to fund purchases of stock under its share repurchase program.
The eight year senior notes will be unsecured indebtedness guaranteed on a senior basis by substantially all of DIRECTV's domestic subsidiaries. The senior notes will be sold to qualified institutional buyers in reliance on Rule 144A, and outside the United States in compliance with Regulation S under the Securities Act. The senior notes initially will not be registered under the Securities Act of 1933 or state securities laws and may not be offered or sold by holders thereof without registration unless an exemption from such registration is available.
This announcement is not an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of the securities in any state where such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
DIRECTV is a world-leading provider of digital multichannel television entertainment.
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements are based on our current beliefs or expectations and are inherently subject to significant uncertainties and changes in circumstances, many of which are beyond our control. There can be no assurance that our beliefs or expectations will be achieved.
The DIRECTV Group, Inc. Media Contact: Darris Gringeri, 212-462-5136 or Investor Relations, 212-462-5200
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