EchoStar said it has wrapped up a string of strategic transactions that will put it in position to build out its open RAN 5G network. #pressrelease
November 12, 2024
EchoStar Corporation (Nasdaq: SATS) ("EchoStar"), a global, fully integrated communication and content delivery leader and provider of technology, spectrum, engineering, manufacturing, networking services, television entertainment and connectivity, today announced the successful completion of various transformative strategic transactions positioning its business for the further enhancement of its nationwide Open RAN 5G Network. Today's announcements highlight the tremendous value of EchoStar's spectrum asset portfolio serving as the sturdy platform on which EchoStar will accelerate its deployment of a nationwide wireless service to vigorously compete with incumbent wireless carriers.
EchoStar announced the final results of its previously announced offers to exchange (the "exchange offers") (i) any and all of the approximately $2 billion of 0% Convertible Notes due 2025 (the "DISH Network 2025 Notes") issued by its subsidiary DISH Network Corporation ("DISH") and (ii) any and all of the approximately $3 billion of 3.375% Convertible Notes due 2026 issued by DISH (the "DISH Network 2026 Notes," and together with the DISH Network 2025 Notes, the "Existing Convertible Notes"), for the applicable principal amount of 6.75% Senior Spectrum Secured Exchange Notes due 2030 and 3.875% Convertible Senior Spectrum Secured Notes due 2030 to be issued by EchoStar, in each case, pursuant to the terms described in a prospectus and consent solicitation statement, dated November 7, 2024.
As reported by D.F. King & Co., Inc., the exchange agent and information agent for the exchange offers, as of the expiration date of the exchange offers, an aggregate principal amount of $4,682,384,000 of Existing Convertible Notes had been validly tendered (and not validly withdrawn) in the exchange offers, which represented participation from 92.93% of the holders of our DISH Network 2025 Notes and 98.45% of the holders of our DISH Network 2026 Notes. The settlement of the exchange offers results in EchoStar's issuance of approximately $2.3 billion in aggregate principal amount of its 6.75% Senior Spectrum Secured Exchange Notes due 2030 and approximately $1.9 billion in aggregate principal amount of its 3.875% Convertible Senior Spectrum Secured Notes due 2030, each of which is secured by EchoStar's AWS-3 and AWS-4 spectrum assets.
The overwhelming support from our existing stakeholders evidenced by over 96% participation in these exchange offers leaves only $139 million in aggregate remaining debt maturities in 2024 and 2025 and significantly improves EchoStar's debt maturity profile through the extension of significant debt maturities to November 2030.
Read the full press release here.
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