EchoStar initiates exchange offers to restructure debt By Investing.com
[ad_1]
© Reuters.
ENGLEWOOD, Colo. – EchoStar Corporation (NASDAQ:SATS), a global communications company, announced the commencement of exchange offers aimed at restructuring the debt of its subsidiary DISH Network Corporation (NASDAQ:). The exchange offers pertain to the 0% Convertible Notes due 2025 and the 3.37% Convertible Notes due 2026, which are to be exchanged for 10% Senior Secured Notes due 2030 issued by EchoStar.
The restructuring is part of EchoStar’s strategy to reduce its consolidated indebtedness and extend its debt maturity profile, providing a foundation for continued strategic investment. The move is also seen as a step towards enhancing EchoStar’s capabilities to create a global leader in both terrestrial and non-terrestrial wireless connectivity, leveraging DISH Network’s satellite technology and 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 consent solicitations for amendments to the terms of the existing DISH notes, which include the elimination of certain default events and restrictive covenants.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
[ad_2]
Source link
© Reuters.
ENGLEWOOD, Colo. – EchoStar Corporation (NASDAQ:SATS), a global communications company, announced the commencement of exchange offers aimed at restructuring the debt of its subsidiary DISH Network Corporation (NASDAQ:). The exchange offers pertain to the 0% Convertible Notes due 2025 and the 3.37% Convertible Notes due 2026, which are to be exchanged for 10% Senior Secured Notes due 2030 issued by EchoStar.
The restructuring is part of EchoStar’s strategy to reduce its consolidated indebtedness and extend its debt maturity profile, providing a foundation for continued strategic investment. The move is also seen as a step towards enhancing EchoStar’s capabilities to create a global leader in both terrestrial and non-terrestrial wireless connectivity, leveraging DISH Network’s satellite technology and 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 consent solicitations for amendments to the terms of the existing DISH notes, which include the elimination of certain default events and restrictive covenants.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
About The Author
