EchoStar pays $1.6 billion in interest to Dish bondholders under debt restructuring deal
19/03/2026 14:23
March 19 (Reuters) - EchoStar SATS.O entered into a debt restructuring deal with a group of Dish DBS bondholders, in a move to deleverage the company, and paid about $1.6 billion in interest, according to its regulatory filing on Thursday. The creditor group represented about 82% of Dish DBS' bondholders, said EchoStar, which acquired Dish DBS' parent company Dish Network in late 2023. The company also said it would repay some Dish DBS notes early without penalty as part of the deal and that it had also agreed with the bondholders to dismiss all pending litigation, the filing showed. The filing marks the latest step in a long effort by EchoStar to deal with heavy debt and comes years after a failed debt-exchange offer hampered a sale of its satellite TV unit. The company said last May it would skip a roughly $326 million interest payment due to uncertainty around a Federal Communications Commission review that raised questions about its 5G obligations and spectrum rights. In November 2024, U.S. satellite TV provider DirecTV had terminated its agreement to acquire EchoStar's satellite television business, after Reuters had reported Dish bondholders rejected a proposed debt-exchange offer from DirecTV that was contingent upon them accepting a "haircut" of $1.5 billion. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Anil D'Silva) ((ArsheeyaSingh.Bajwa@thomsonreuters.com; +91 8510015800;))