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Bond Market News
EchoStar Skips Bond Payments Amid FCC Scrutiny
June 4, 2025
EchoStar Corp has skipped multiple interest payments on its debt, a decision linked to an ongoing Federal Communications Commission (FCC) review. These missed payments total over $500mn which includes a $326mn payment on senior spectrum-secured notes due late last week and a $183mn payment on its TV operator unit, Dish DBS Corp’s notes due earlier this week. Echostar stated that the uncertainty caused by the FCC’s review of its 5G network buildout obligations and spectrum rights has “effectively frozen” its ability to make decisions regarding its Boost Mobile business and network expansion. EchoStar maintains it has met its 5G buildout milestone. SpaceX has also urged the FCC to auction off EchoStar’s spectrum, arguing it is not fully utilized. While EchoStar currently has a 30-day grace period to make these payments before an official default, the skipped payments have raised concerns about its financial stability, as per sources. EchoStar has a substantial debt load of ~$30bn. The company’s decision to withhold payments is reportedly intended to allow time for the FCC to provide requested relief.
Dish DBS’ 7.75% 2026s were down by 2.4 points to trade at 81.
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