EL SEGUNDO, Calif. -- Satellite company Hughes Electronics said on Thursday it had completed $3.1 billion in financing deals -- slightly larger than originally set -- through its broadcasting business DirecTV.
The transactions were first announced on Feb. 10 and were viewed at the time by analysts as a potential move by General Motors, which owns Hughes, to position the company for a sale.
After the collapse of EchoStar Communications' bid to buy Hughes last year, GM, which needs cash to alleviate its underfunded pension liability, said it was reviewing its options.
The financing, which was backed by DirecTV assets, includes a credit facility of $1.675 billion, up from the $1.55 billion the company had set in February, and a $1.4 billion DirecTV senior notes offering, Hughes said in a statement.
It did not explain why the credit facility was larger than initially expected in the statement.
About $2.75 billion of the proceeds will be paid to Hughes and used to repay $506 million short-term debt and for general purposes, the company said.
The senior secured facilities include a $250 million five year revolving credit, a $375 million five-year loan and another $1.05 billion seven-year loan.
The $1.4 billion notes mature in March 2013.