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EchoStar Announces Debt Offering to Acquire Hughes

11 May 2011

 

EchoStar Corporation announced that its wholly-owned subsidiary, EH Holding Corporation, plans to offer $1 billion aggregate principal amount of senior secured notes and $800 million aggregate principal amount of senior unsecured notes. The net proceeds of the offering are intended to be used to fund a portion of the purchase price for EchoStar's previously announced acquisition of Hughes Communications, Inc. ("Hughes Communications"), and the remainder will be used to fund the repayment or redemption of certain outstanding indebtedness of Hughes Communications and its wholly-owned subsidiary, Hughes Network Systems, LLC.

 

The notes will only be offered and sold to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and in offshore transactions in accordance with Regulation S under the Securities Act. The notes being offered will not be and have not been registered under the Securities Act or the securities laws of any other jurisdiction. The notes may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the notes; nor shall there be any sale of these securities in any state or jurisdiction in which such an offer solicitation or sale would be unlawful.