ENGLEWOOD, Colo., Jan. 10,
2024 /PRNewswire/ -- EchoStar Corporation (Nasdaq:
SATS) ("EchoStar" or the "Company") announced today the completion
of a series of strategic transactions to further unlock incremental
strategic, financial and operating flexibility for its business
following completion of its merger with DISH Network Corporation
("DISH Network").
The merger itself combined DISH Network's satellite technology,
streaming services and nationwide 5G network
with EchoStar's premier satellite communications
solutions, creating a global leader in terrestrial and
non-terrestrial wireless connectivity. The transactions announced
today only further that objective of realizing on the synergistic
capabilities of the combined company, while also providing it with
optimized strategic and financing flexibility.
In connection with these strategic transactions, DISH Network
has transferred certain of its diverse unencumbered wireless
spectrum licenses, including AWS-4, H-Block, CBRS, C-Band -
Cheyenne, 12GHz, LMDS, 24 GHz, 28
GHz, 37GHz, 30GHz and 47GHz, under the umbrella of a newly formed
subsidiary, EchoStar Wireless Holding L.L.C., a direct wholly-owned
subsidiary of the Company (the "Spectrum Transfer"). DISH
Network will continue to retain ownership of various other valuable
wireless spectrum licenses, including 600 MHz, 700 MHz, 3.45 GHz
and AWS-3, of which 700 MHz and AWS-3 also remain unencumbered, and
DISH DBS Corporation ("DBS").
Prior to the Spectrum Transfer, DBS, which offers pay-TV
services under the DISH® brand and the SLING® brand, designated a
newly formed subsidiary of DISH Network LLC (the "DBS Subscriber
Subsidiary"), DBS Intercompany Receivable L.L.C., Sling TV Holding,
L.L.C., Sling TV Purchasing L.L.C., Sling TV L.L.C. and Sling TV
Gift Card Corporation as "Unrestricted Subsidiaries" in accordance
with, and in compliance with, the terms of the relevant indentures
governing such entities.
DBS Subscriber Subsidiary holds approximately 3.0 million DISH
TV subscribers immediately following the unrestricting of such
entity. DISH DBS expects to have ongoing access to a
substantial portion of the net cash generated from its pay-TV
subscriber base, including those held at DBS Subscriber Subsidiary,
for use in its business (including the business of DISH Network),
including to de-lever its balance sheet, enhance its debt maturity
profile and for general corporate purposes, and the remainder of
the DISH Network consolidated business will continue to operate
unaffected thereby.
DBS, in its capacity as "Lender" under the terms of the Loan and
Security Agreement related to the term loan facility between DISH
Network and DBS, has also consummated the assignment pursuant to
such terms, without any modification or amendment thereto, of its
receivable in respect of Tranche A thereunder (valued at
approximately $4.7 billion) to DBS
Intercompany Receivable L.L.C. DBS Intercompany Receivable
L.L.C. has subsequently assigned its rights as lender
thereunder to EchoStar Intercompany Receivable Company L.L.C., a
direct wholly-owned subsidiary of the Company, such that amounts
owed in respect of Tranche A will now be paid by DISH Network to
EchoStar Intercompany Receivable L.L.C.
"This asset allocation enables EchoStar to more optimally
position the necessary resources for the execution of its strategic
goal of becoming the premier provider of terrestrial mobile,
satellite connectivity, and content services" said Hamid Akhavan, President and Chief Executive
Officer of EchoStar.
The Company has engaged Houlihan
Lokey and White & Case LLP as financial and legal
advisors, respectively, to assist the Company in evaluating
potential strategic alternatives.
About EchoStar Corporation
EchoStar Corporation (Nasdaq: SATS) is a premier provider of
technology, networking services, television entertainment and
connectivity, offering consumer, enterprise, operator and
government solutions worldwide under its EchoStar®, Boost Mobile®,
Boost Infinite, Sling TV, DISH TV, Hughes®, HughesNet®, HughesON™,
and JUPITER™ brands. In Europe, EchoStar operates under its
EchoStar Mobile Limited subsidiary and in Australia, the
company operates as EchoStar Global Australia. For more
information, visit www.echostar.com and follow EchoStar
on X (Twitter) and LinkedIn.
Forward-looking Statements
This news release may contain forward-looking statements about
the future performance of EchoStar Corporation, which may generally
be identified by the use of the words "anticipates," "hopes,"
"expects," "intends," "plans," "should," "could," "would," "may,"
"believes," "subject to" and variations or similar expressions.
These statements are based upon the current expectations and
beliefs of management and are subject to certain risks and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. Actual
results are subject to other risks and uncertainties that relate
more broadly to EchoStar Corporation's overall business, including
those more fully described in EchoStar Corporation's most recent
annual report on Form 10-K and detailed from time to time in
EchoStar Corporation's other filings with the U.S. Securities and
Exchange Commission, which factors are incorporated herein by
reference.
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SOURCE EchoStar Corporation