EchoStar Announces $1 Billion Debt Offering

[Scott Greczkowski]

EchoStar Announces $1 Billion Debt Offering


ENGLEWOOD, Colo.--(BUSINESS WIRE)--Sept. 20, 2004--EchoStar Communications Corporation (NASDAQ: DISH) today announced that its subsidiary, EchoStar DBS Corporation, is offering approximately $1 billion aggregate principal amount of debt securities in accordance with Securities and Exchange Commission Rule 144A. The proceeds of the offering are intended to be used for general corporate purposes.
This notice does not constitute an offer to sell or the solicitation of an offer to buy securities. Any offers of the securities will be made only by means of a private offering circular.
The notes have not been registered under the Securities Act of 1933, as amended, or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995

Except for historical information contained herein, the matters set forth in this press release are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in EchoStar Communications Corporation's Disclosure Regarding Forward-Looking Statements included in its recent filings with the Securities and Exchange Commission, including its annual report on Form 10-K and its most recent quarterly report on Form 10-Q.
The forward-looking statements speak only as of the date made, and EchoStar Communications Corporation expressly disclaims any obligation to update these forward-looking statements.

About EchoStar

EchoStar Communications Corporation (NasdaqISH) serves more than
10.1 million satellite TV customers through its DISH Network(TM) and is a leading U.S. provider of advanced digital television services.
DISH Network's services include hundreds of video and audio channels, Interactive TV, HDTV, sports and international programming, together with professional installation and 24-hour customer service. EchoStar has been a leader for 24 years in digital satellite TV equipment sales and support worldwide. EchoStar is included in the Nasdaq-100 Index
(NDX) and is a Fortune 500 company. Visit EchoStar's Web site at
(www.echostar.com) or call 1-800-333-DISH (3474).

--30--

CONTACT: EchoStar Communications Corporation
Investor Relations:
Jason Kiser, 303-723-2210
jason.kiser@echostar.com
or
Press Contact:
Steve Caulk, 303-723-2010
steve.caulk@echostar.com

 

[SimpleSimon]

I thought E* had been buying back stock and bonds?

 

[Scott Greczkowski]

Yeah they have been. I don't know why they are doing this now...

 

[A_Noland]

My guess is they're trying to keep up with D*'s plans to get more HD capacity. Also, the dept they were paying off was at fairly high interest rates. Bet they can get the money cheaper now.

 

[NightRyder]

My guess is they're trying to keep up with D*'s plans to get more HD capacity. Also, the dept they were paying off was at fairly high interest rates. Bet they can get the money cheaper now.

Probably a pretty good guess. I wonder if they've been talking to Boeing lately?



NightRyder

 

[AcuraCL]

Yep. Looks like someone is going satellite shopping ....

 

[Stacy A]

Can you believe I was just talking to an IT guy here where I work about my woes with Dish being behind right now and this guy tells me something I have a hard time believing?

He says that the military is about to give over its communications satellites (he called them milstars) to the FCC to sell space on. He says that ultimately we will no longer need a dish, but an antenna sort of like one on a GPS unit. And, he said it not only acts as a receiver, but a transmitter as well and therefore the broadband service issue will be solved for DBS services as it is a 10Mb system.

Maybe Echostar is raising the capital to buy some of that.

Hah. Can you believe this stuff?

 

[mike123abc]

Dish could also simply be refinancing some high interest rate bonds. Last time they sold a billion they paid off some really high interest rate ones with the new money. When you get a 4% lower rate on a billion you are talking some serious cash savings.

Dish currently has AMC-15, E10, plus 2 more satellites (Ku-FSS) on order that I know of right now (from their SEC filings). They also need a new one for 157. They will probably have to get a replacement for E3 if they are serious about 61.5, and a new one for E1/E2 at 148. Not to mention probably 3+ Ka band satellites will be needed.

In their last quarterly report they had about 1.7 billion in cash/short term investments. They will probably have more built up since they have been cash flowing pretty good lately.

 

[NightRyder]

You know, you can't trust those IT types

From what I have read it seems highly unlikely these satellites would be usable for video transmissions, besides the military is still using them. The antenna comment just doesn't hold water. See below....

There are two types of Milstar terminals: Rockwell Collins Scamp 40-lb. terminals that use about a 1.5-ft.-dia. dish capable of supporting four simultaneous 2,400-bps. voice or data channels, and larger Raytheon "Smart-T" terminals involving about a 4-ft. dish mounted on Humvees and capable of providing much higher data rates. Marine units operating in Iraq are supported by 12 of the Humvee Smart-T terminals, while the Army's 4th Infantry Div. is bringing in an additional 12 Smart-T mobile terminals. Special Forces, especially in northern Iraq, are carrying several Scamps.



NightRyder

 

[rad]

Maybe E* needs the $'s to pay for all the receivers they're leasing out. The money to manufacture them needs to come from somewhere.

 

[ken]

The military WILL NOT GIVE UP MILSTAR, these billion dollar birds (yes I said BILLION)are hardened against nukes and have the militarys top Strategic communications systems for use by nuke forces.

 

[rocatman]

The military WILL NOT GIVE UP MILSTAR, these billion dollar birds (yes I said BILLION)are hardened against nukes and have the militarys top Strategic communications systems for use by nuke forces.

It also cost $500 million+ each to launch them on Titan IV Launch Vehicles besides the cost of the satellites themselves. They are hardened for Electromagnetic Pulses (EMP) that would be generated from a nuclear explosion.

 

[OdiOdin]

Those sats are also on a much lower orbital I do beleive.

 

[NightRyder]

Looks like a prudent refinancing of capital.


http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=dish&script=410&layout=-6&item_id=616941


EchoStar Places $1 Billion in Senior Notes

ENGLEWOOD, Colo.--(BUSINESS WIRE)--Sept. 21, 2004--EchoStar Communications Corporation (NasdaqISH) today announced that its subsidiary, EchoStar DBS Corporation, has priced $1 billion aggregate principal amount of 10-year, 6 5/8 percent senior debt securities. Interest on the notes, which will mature October 1, 2014, will be paid April 1 and October 1 each year, commencing April 1, 2005. The proceeds of the offering are intended to be used to redeem EchoStar DBS Corporation's 10 3/8 percent Senior Notes due 2007, previously called for redemption effective Oct. 1, 2004.

The sale of the Notes is expected to close on Oct. 1, 2004, subject to customary conditions.

EchoStar DBS Corporation placed the Notes in a private transaction under Rule 144A under the Securities Act. The Notes have not been registered under the Securities Act of 1933, as amended, or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Except for historical information contained herein, the matters set forth in this press release are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in EchoStar Communications Corporation's Disclosure Regarding Forward-Looking Statements included in its recent filings with the Securities and Exchange Commission, including its annual report on Form 10-K and its most recent quarterly report on Form 10-Q. The forward-looking statements speak only as of the date made, and EchoStar Communications Corporation expressly disclaims any obligation to update these forward-looking statements.

About EchoStar

EchoStar Communications Corporation (NasdaqISH) serves more than 10.1 million satellite TV customers through its DISH Network(TM) and is a leading U.S. provider of advanced digital television services. DISH Network's services include hundreds of video and audio channels, Interactive TV, HDTV, sports and international programming, together with professional installation and 24-hour customer service. EchoStar has been a leader for 24 years in satellite TV equipment sales and support worldwide. EchoStar is included in the Nasdaq-100 Index (NDX) and is a Fortune 500 company. Visit EchoStar's Web site at (www.echostar.com) or call 1-800-333-DISH (3474).

CONTACT: EchoStar Communications Corporation
Investor Relations:
Jason Kiser, 303-723-2210
jason.kiser@echostar.com
or
Press Contact:
Steve Caulk, 303-723-2010
steve.caulk@echostar.com

SOURCE: EchoStar Communications Corporation

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NightRyder