ENGLEWOOD, Colo. - EchoStar Corporation (NASDAQ:SATS), a global provider of satellite communication solutions, has announced the completion of strategic transactions aimed at enhancing its business flexibility following its merger with DISH Network (LON:NETW) Corporation (NASDAQ:DISH). The transactions are designed to optimize the company's strategic and financial positioning.
The merger, which combined DISH Network's technology with EchoStar's satellite communications, has positioned the newly formed entity as a leader in wireless connectivity. The latest transactions involve the transfer of various wireless spectrum licenses from DISH Network to EchoStar Wireless Holding L.L.C., a wholly-owned subsidiary of EchoStar. The licenses transferred include AWS-4, H-Block, CBRS, C-Band - Cheyenne, and others, while DISH Network retains ownership of 600 MHz, 700 MHz, 3.45 GHz, and AWS-3 spectrum licenses.
Furthermore, DISH Network has restructured its subsidiaries, designating certain entities as "Unrestricted Subsidiaries," which allows for greater financial maneuverability. Approximately 3.0 million DISH TV subscribers are held by the newly unrestricted DBS Subscriber Subsidiary. This restructuring is expected to provide DISH DBS access to a significant portion of the net cash generated from its pay-TV subscriber base.
Additionally, a $4.7B receivable related to a term loan facility between DISH Network and DBS has been assigned to EchoStar Intercompany Receivable Company L.L.C., another wholly-owned subsidiary of EchoStar.
EchoStar President and CEO Hamid Akhavan highlighted that these moves are instrumental in positioning EchoStar to achieve its strategic goal of becoming a premier provider of terrestrial mobile, satellite connectivity, and content services.
As part of its ongoing strategic evaluation, EchoStar is working with financial advisor Houlihan Lokey (NYSE:HLI) and legal advisor White & Case LLP to explore potential strategic alternatives.
This news is based on a press release statement from EchoStar Corporation. The company cautions that this news release may contain forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from expectations.
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