DIRECTV Tender Offer Expires

Yesterday, DIRECTV Holdings, a wholly-owned subsidiary of the DIRECTV Group, Inc. (DTV - Analyst Report) announced the expiration of its cash tender offer, which commenced on Sept. 14, 2009. The company intended to purchase all or part of its outstanding 8.375% senior notes of $910 million due 2013. Citigroup Global Markets, Credit Suisse Securities and J.P. Morgan Securities managed the tender offer.

To fund its cash tender offer, DIRECTV raised $2 billion through private placement of debt securities that closed on Sept. 22, 2009. The company sold 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). Part of the fund raised will also be utilized for general business purposes.

On the expiration of the cash tender offer, DIRECTV has purchased $583.1 million of the total principal amount of senior notes due 2013, representing approximately 64.1 % of the $910 million total principal amount. The holders of senior notes will receive $1,031.25 per $1,000 principal amount. The company will also pay interest if due and outstanding on the notes purchased pursuant to the offer to the date prior to the settlement date (Sept. 22, 2009).

DIRECTV also issued a Notice of Optional Redemption for the remaining principal amount aggregating $326.9 million (approximately 35.9% of the $910 million total principal amount) at a price of 102.792% of the principal amount plus interest accrued as on Oct. 23, 2009. DIRECTV Group is the world’s leading provider of satellite delivered digital television, video, and broadband. The company provides digital television service to more than 18.3 million customers in the United States and over 6 million customers in Latin America.