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EchoStar has reached a debt restructuring agreement with more than 82% of creditors holding Dish DBS debt. The restructuring covers the repayment of $1.6bn in term loans and preferred membership interests. The deal can be executed through either Chapter 11 bankruptcy or an out-of-court process, notably giving EchoStar greater flexibility to pursue M&A transactions. Analaysts note that it could potentially reopen the door to a sale of its Dish satellite TV business to DirecTV, after earlier negotiations fell apart in 2024. The agreement also resolves longstanding disputes between Dish DBS creditors and the satellite TV business over intercompany loans and asset transfers. Last year, the company sold its spectrum to AT&T and SpaceX for $23bn and $17bn, respectively. The spectrum sales, combined with this restructuring, suggest EchoStar is streamlining its remaining assets and clearing the path for any renewed deal-making with DirecTV.
Dish’s 7.375% 2028s were stable at 96.5, yielding 9.11%
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