DirecTV will terminate Dish deal unless debt swap resolved – Bloomberg
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DirecTV plans to abandon its planned purchase of Dish Network Corp. in 10 days if bondholders don’t agree on a debt exchange.
“A successful exchange was a condition for acquiring the Dish video business,” a DirecTV spokesperson said in an emailed statement to Bloomberg. “Given the outcome of the EchoStar exchange, DirecTV will have no choice but to terminate the acquisition of Dish by midnight on Nov. 22.”
A group of DISH bondholders on Monday rejected an improved offer by DirecTV.
Telecom operator AT&T (T) and joint-venture partner TPG Capital (TPG) agreed in late September to merge their DirecTV service with EchoStar’s (SATS) Dish. The deal is contingent upon Dish’s bondholders agreeing to take a haircut on the principal amount of the company’s debt.