Echostar Corporation has announced the commencement of exchange offers to exchange any and all of the 0% convertible notes due 2025 and the 3.375% convertible notes due 2026 issued by its subsidiary, Dish Network Corporation, for new senior secured notes and convertible secured notes to be issued by Echostar. This marks a significant development in the implementation of Echostar’s balance sheet optimization transactions.
The exchange offers and consent solicitations have garnered increased support from existing stakeholders, now representing over 90% of Dish’s approximately $5 billion of existing convertible notes, satisfying the minimum tender condition.
The principal amount outstanding for the 0% convertible notes due 2025 is $1,957,197,000, and for the 3.375% convertible notes due 2026 is $2,908,799,000. The exchange consideration for the 0% notes includes $524.30 of Echostar exchange notes and $400.70 of Echostar convertible notes, while for the 3.375% notes, it includes $465.90 of Echostar exchange notes and $400.70 of Echostar convertible notes.
The Echostar notes will be guaranteed by certain subsidiaries and secured equally and ratably with certain other secured indebtedness on a first-priority basis, subject to permitted liens and certain exceptions.
The exchange offers and consent solicitations will expire on November 7, 2024, and are subject to certain conditions and applicable law, at Echostar’s sole discretion.
D.F. King & Co., Inc. is acting as the exchange agent and information agent for the exchange offers and consent solicitations.
This press release does not constitute an offer to sell or exchange any securities, nor shall there be any exchange of the Echostar notes for existing Dish notes pursuant to the exchange offers and consent solicitations in any jurisdiction in which such exchanges would be unlawful prior to registration or qualification under the laws of such jurisdiction.
Echostar Corporation (NASDAQ: SATS) is a global fully integrated communications and content delivery leader and provider, offering consumer, enterprise, operator, and government solutions worldwide under various brands. As a result of these announcements, the company's shares have moved -1.8% on the market, and are now trading at a price of $25.02. For more information, read the company's full 8-K submission here.
