Bondholders Reject Deal

[Scott Greczkowski]

MSN

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[b4pjoe]

https://www.msn.com/en-gb/money/other/dish-bondholders-reject-debt-exchange-offer-for-directv-deal-document-shows/

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Link doesn't work.

 

[Scott Greczkowski]

Try this one.

MSN

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[nelson61]

But, Charlie and his team have pulled it off again and are good to go for several more years.

https://ir.echostar.com/news-releases/news-release-details/echostar-corporation-announces-successful-completion-various

'The repayment in full of the November 2024 DDBS maturity similarly enhances DDBS's debt maturity profile, leaving DDBS with zero long-term debt maturities due until July 2026.

""The EchoStar team continued to execute against our plan in the third quarter. Our efforts focused on profitable customer acquisition and retention, strengthening our consumer offerings and enhancing our nationwide Open RAN 5G network," said Hamid Akhavan, president and CEO, EchoStar Corporation. "In addition, we recently announced a series of transformative transactions that will disrupt the wireless and pay-TV industries. We secured financing to meet our November debt maturity and announced an agreement with a group of our convertible note holders. This last transaction provides approximately $5.2 billion in additional financing and extends payment terms for the existing convertible notes tendered. In addition, we agreed to sell our pay-TV business to DIRECTV, subject to successful completion of an ongoing exchange and other closing conditions."

https://ir.echostar.com/news-releases/news-release-details/echostar-announces-financial-results-three-and-nine-months-6

And that should quiet down the doubters --- or maybe not

 

[CSM]

I am really surprised that Charlie hasn't beefed up Sling TV or replaced Sling TV with a new streaming service that he could pair with his 5g network. He could then let Dish Network go. Or rebrand Sling TV Dish Network+ Could Dish Network survive going that way?

 

[MikeD-C05]

So the DBS bond holders who rejected the deal, do they still keep their stock holdings in Echostar or do they just lose out on the total amount of money period? I am confused what happens to the stock holders who won't agree to the transfer over to TPG stock.

 

[navychop]

BOND holders. Not stockholders.

 

[Bruce]

So the DBS bond holders who rejected the deal, do they still keep their stock holdings in Echostar or do they just lose out on the total amount of money period? I am confused what happens to the stock holders who won't agree to the transfer over to TPG stock.

Here is the latest news, which includes what Nelson posted.

Basically, have until 5pm, but could be extended again, depends on how much TPG wants Dish/Sling.

https://finance.yahoo.com/news/dish-lenders-reject-directv-debt-021208979.html

 

[nelson61]

So long as they get their scheduled bond payments, they have little say in how things proceed.
And as Echostar stated, they now only have 139 million in outstanding debt that has to be retired in 2024 and 2025.

 

[Bruce]

So long as they get their scheduled bond payments, they have little say in how things proceed.
And as Echostar stated, they now only have 139 million in outstanding debt that has to be retired in 2024 and 2025.

But the deal with TPG will still go south.

Which might be what Dish wants.

Then what about the $2 Billion already received from TPG, when would Echostar pay that back…..terms?

 

[Bruce]

Looks like another 10 Days, then the deal is off.

Do not know why TPG keeps threatening the bond holders with these dates, it was supposed to be over today or they were going to kill the deal, now they have till Nov.22.

https://finance.yahoo.com/news/directv-plans-call-off-dish-005258877.html

 

[b4pjoe]

Looks like another 10 Days, then the deal is off.

Do not know why TPG keeps threatening the bond holders with these dates, it was supposed to be over today or they were going to kill the deal, now they have till Nov.22.

https://finance.yahoo.com/news/directv-plans-call-off-dish-005258877.html

“DirecTV has no plans to sweeten the debt-exchange proposal again, people familiar with the matter said, asking not to be identified discussing private information. Negotiations will now need to take place between EchoStar Chairman Charlie Ergen and Dish creditors, they added.”

“The deal was contingent, though, upon Dish’s bondholders agreeing to take a haircut on the principal amount of the company’s debt.”

So a take it or leave it scenario for the next 10 days.

 

[Bruce]

So a take it or leave it scenario for the next 10 days.

It was take it or leave it by today.

With another extension, the hold out Bond Holders will believe TPG will give even better terms.

 

[b4pjoe]

It was take it or leave it by today.

With another extension, the hold out Bond Holders will believe TPG will give even better terms.

Well the article said "DirecTV has no plans to sweeten the debt-exchange proposal again, people familiar with the matter said, asking not to be identified discussing private information." so we will see if they cave or if the bondholders come to their senses.

 

[MikeD-C05]

So DISH and Sling TV goes back to Echostar and with it the $9.75 billion in debt that was part of the two-step transaction as part of the initial deal. Right? leaving Charlie to make the decision whether to go bankrupt by the end of the year to make all that $20 billion in outstanding debt goes bye bye. So a chapter 11 reorganization bankruptcy?