ENGLEWOOD, CO—EchoStar Corporation, along with its subsidiaries DISH Network Corporation (NASDAQ:DISH) and DISH DBS Corporation, announced today that negotiations with certain senior debt security holders have concluded without reaching an agreement.
The discussions involved a potential transaction that would exchange various senior debt securities issued by DISH DBS Corporation for new secured notes with extended maturity dates. The proposed exchange aimed to reflect discounts on the face value of the existing securities and premiums over their market prices. Additionally, the transaction contemplated new money loans to EchoStar from some of the debt holders, including members of an ad hoc group represented by Milbank LLP.
Despite the conclusion of these talks without an accord, EchoStar remains actively engaged with other parties to explore possible financing transactions. The company's pursuit of new financing solutions is part of its ongoing efforts to manage its capital structure and obligations.
EchoStar's engagement in these negotiations and the current status of its financing efforts were disclosed in a Form 8-K filed with the Securities and Exchange Commission (SEC) today.
In other recent news, Echostar (NASDAQ:SATS) Corporation reported a 9% year-over-year decline in its second-quarter 2024 revenue, dropping to $3.95 billion, primarily due to subscriber losses. The company's Operating Income Before Depreciation and Amortization (OIBDA) stood at $442 million, experiencing a decrease of $181 million from the previous year. TD Cowen maintained a Buy rating on Echostar shares but trimmed its price target from $38.00 to $37.00 due to uncertainties surrounding the company's future financing needs.
Despite these challenges, Echostar is making strides in the in-flight communications sector, securing deals with TCI and Türksat, and expressing optimism about the potential of the 5G private networks market. The company is also actively working on addressing liquidity issues and reshuffling assets to extend the life of its equity. Echostar anticipates enterprise revenues to surpass consumer revenues this year and is planning to increase capital expenditure in preparation for its 2025 build-out requirements.
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