DIRECTV Announces Note-Buyback

On September 14, 2009, DIRECTV Holdings, a wholly owned subsidiary of the DIRECTV Group Inc. (DTV - Analyst Report) announced the commencement of its cash tender offer. The company plans to purchase all or part of its outstanding 8.375% senior notes of $910 million due 2013. The offer will expire on Sep 21, 2009. 

Citigroup Global Markets, Credit Suisse Securities and J.P. Morgan Securities are managing the tender offer. 

To fund its cash tender offer, DIRECTV agrees to sell senior notes amounting to $2 billion in two parts - 4.75% senior notes of $1 billion due 2014 (issue price of $99.729) and another 5.875% senior notes of $1 billion due 2019 (issue price of $99.259). The company also expects to use the proceeds for general business purposes. 

The holders of senior notes will receive $1,031.25 per $1,000 principal amount. The company will also pay any interest due and outstanding on the notes purchased pursuant to the offer to the date prior to the settlement date of Sep 22, 2009. 

DIRECTV Group is the world's leading provider of satellite delivered digital television, video, and broadband. The company provides advanced communication services and develops a broad range of entertainment, information, and communication services for home and business use, including video, data, voice, multimedia, and Internet services. DIRECTV provides digital television service to more than 18.3 million customers in the United States and over 5.9 million customers in Latin America.

Read the full analyst report on DTV