© Reuters.
ENGLEWOOD, COLO – EchoStar Corporation (NASDAQ:SATS), a global communications company, announced the initiation of exchange offers to restructure the debt of its subsidiary DISH Network Corporation. The exchange offers include 0% Convertible Notes due 2025 and 3.37% Convertible Notes due 2026, which will be exchanged for 10% Senior Secured Notes due 2030 issued by EchoStar.
The restructuring is part of EchoStar’s strategy to reduce consolidated indebtedness and extend the debt maturity profile, providing a foundation for continued strategic investments. The move is also seen as a step towards strengthening EchoStar’s capabilities to create a global leader in terrestrial and non-terrestrial wireless connectivity, leveraging satellite technology and DISH Network’s 5G network.
The new EchoStar Notes will be backed by a guarantee from EchoStar’s indirect subsidiary, DBSD Corporation, and secured by first priority liens on valuable spectrum assets, estimated to be worth approximately $9 billion.
The exchange offers are accompanied by solicitations of consent for amendments to the terms of the existing DISH notes, which include the elimination of certain events of default and restrictive covenants.
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