The proceeds from the offering will be placed in escrow and will then be released to finance part of the funds needed for the $25.5 billion Sprint acquisition. If the proposed merger falls through or doesn't take place before a certain date, Dish plans to redeem the notes.
Dish and Japanese carrier SoftBank have been battling for Sprint for the past couple months. SoftBank in October offered to pay shareholders $12.1 billion and give the carrier $8 billion in cash for network upgrades and other improvements in exchange for a 70 percent stake in the company. Dish threw a wrench in SoftBank's plans last month by offering $17.3 billion in cash and $8.2 billion in stock.
Since that time, the two companies have been vying to show why their own bids are superior. SoftBank has argued that its experience with TD-LTE would dramatically improve Sprint's LTE efforts and give it a superior offering in the U.S. market. Dish has said its higher price and U.S. headquarters make its bid more attractive. The company has argued that a SoftBank acquisition of Sprint wouldn't be good for U.S. national security.