Fresh off a better than expected second quarter in terms of basic subscriber growth, Dish Network is making moves to tap the debt markets, filing for a $1 billion offering of debt securities on Wednesday.
In a securities filing Aug, 12, Dish said it would offer the securities in a private placement through a subsidiary, Dish DBS Corp. The proceeds of the offering would be used for general corporate purposes.
Dish surprised may analysts by adding 26,000 net new subscribers in the second quarter -- consensus was for a loss of 131,000 customers -- but lagged in other metrics. For example, revenue for the company was down 0.4% to $2.9 billion and operating income plunged 57% to $262.8 milion in the period.
The satellite giant's stock rose sharply after reporting results on Aug, 10 (it finished the day up 88 cents, or 5%, to $19.30 , but gave back most of the gain the next day, closing at $18.53 down 78 cents. The slump continued Wednesday, with the stock down 22 cents (1%) to $18.31 in early trading.