EchoStar Corporation Announces Additional Conversion Period for 3.875% Convertible Senior Secured Notes Due 2030

Rhea-AI Summary

EchoStar (NASDAQ: SATS) notified holders that its 3.875% Convertible Senior Secured Notes due 2030 are convertible during the period Jan 1, 2026 to Mar 31, 2026. The conversion right was triggered because the company's common stock last sale price exceeded 130% of the conversion price for at least 20 of 30 trading days ending Dec 31, 2025.

The Notes convert at 29.73507 shares per $1,000 principal, equivalent to a conversion price of approximately $33.63 per share. The company may settle conversions in cash, shares, or a combination. Conversion procedures and the conversion agent (The Bank of New York Mellon Trust Company) are specified in the notice available via DTC or by request.

Positive

• Conversion window open Jan 1–Mar 31, 2026
• Conversion rate fixed at 29.73507 shares per $1,000 (≈$33.63 per share)

Negative

• Potential shareholder dilution if conversions settled in common stock
• Uncertainty over cash vs. share settlement because company may elect either option

News Market Reaction

-1.35%

1 alert

-1.35% News Effect

On the day this news was published, SATS declined 1.35%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Coupon rate: 3.875% Maturity year: 2030 Conversion window: Jan 1–Mar 31, 2026 +5 more

8 metrics

Coupon rate 3.875% Convertible Senior Secured Notes due 2030

Maturity year 2030 Convertible Senior Secured Notes due 2030

Conversion window Jan 1–Mar 31, 2026 Period when holders may convert notes

Conversion rate 29.73507 shares per $1,000 Shares of common stock per $1,000 principal amount

Conversion price $33.63 per share Implied by stated conversion rate

Price trigger 130% of conversion price Common stock price condition for note convertibility

Trading days threshold 20 of 30 trading days Period stock exceeded 130% of conversion price

Current price vs conversion $112.18 vs $33.63 Stock price before news vs note conversion price

Market Reality Check

Price: $123.27 Vol: Volume 3,843,635 is below...

low vol

$123.27 Last Close

Volume Volume 3,843,635 is below 20-day average 6,391,845 (relative volume 0.6). low

Technical Price $112.18 is trading above 200-day MA at $49.10, near 52-week high of $112.69.

Peers on Argus

SATS is up 3.2% while close telecom peers show small mixed moves (slight decline...

SATS is up 3.2% while close telecom peers show small mixed moves (slight declines in BCE, TU, VIV and modest gains in TLK, RCI), indicating a stock-specific move tied to company developments rather than a sector-wide shift.

Historical Context

5 past events · Latest: Dec 18 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 18	Product launch	Positive	+1.7%	Launch of ruggedized LEO transportable terminals for rapid field connectivity.
Dec 10	Product/offer launch	Positive	+11.2%	Sling TV introduces flexible 3-Day Pass to expand short-term access options.
Nov 25	Promotional offers	Positive	+0.1%	Boost Mobile launches holiday pricing and lifetime price-lock wireless offers.
Nov 19	Marketing promotion	Positive	-0.9%	Sling TV $1 Day Pass tied to favorable court decision on subscription model.
Nov 06	Earnings and deals	Negative	-2.3%	Q3 results with large impairment, major spectrum sales, and strategy updates.

Pattern Detected

Recent company-specific news has mostly produced price moves that align with the apparent positive or negative tone, with only one divergence on a promotional Sling TV offer.

Recent Company History

Over the last few months, SATS news has focused on product launches and major financial developments. In Q3 2025, EchoStar reported $3.61B in revenue alongside a large impairment and complex spectrum sales, which coincided with a -2.31% move. Subsequent Sling TV and Boost Mobile promotions in Nov–Dec 2025 saw modest to strong positive reactions, including an 11.16% move on the 3-Day Pass launch. Today’s convertible-notes announcement comes as the stock trades near its 52-week high, following this sequence of operational and financial milestones.

Market Pulse Summary

This announcement details an additional conversion period for SATS’s 3.875% Convertible Senior Secur...

Analysis

This announcement details an additional conversion period for SATS’s 3.875% Convertible Senior Secured Notes due 2030, triggered after the stock traded above 130% of the $33.63 conversion price for the required days. Holders may convert into cash, stock, or a mix, at the company’s election. In context of earlier filings that described leverage and maturity pressures, investors may watch actual conversion uptake, any follow-on balance sheet actions, and further disclosures around liquidity and debt management.

Key Terms

convertible senior secured notes, conversion option, conversion rate, conversion price, +3 more

7 terms

convertible senior secured notes financial

"its 3.875% Convertible Senior Secured Notes due 2030 (the "Notes")"

A convertible senior secured note is a loan that a company issues which is backed by specific assets and gets paid before other debts if the company fails, while also giving lenders the option to convert the loan into the company’s shares. For investors this matters because the security and senior status reduce credit risk like a mortgage on a house, but the conversion feature can dilute existing shareholders and tie returns to the stock’s future performance.

conversion option financial

"the Notes are convertible, at the option of the holders (the "Conversion Option")"

A conversion option is a built‑in right that lets the owner of one financial instrument — typically a bond or preferred share — swap it for a set number of common shares under prearranged terms. For investors it matters because it provides a chance to share in the company’s upside like a voucher you can redeem for stock, while also creating potential dilution and changing the security’s risk and return profile compared with ordinary bonds or shares.

conversion rate financial

"The Notes are convertible at a conversion rate of 29.73507 shares"

Conversion rate is the proportion of items, people or contracts that take a desired action out of the total possible — for example the share of website visitors who make a purchase, or the number of convertible bonds that are exchanged for shares. Investors care because it measures how effectively a business or financial instrument turns opportunity into real outcomes, like sales or share issuance, which directly affects revenue, cash flow and ownership dilution.

conversion price financial

"was greater than 130% of the conversion price in effect on each applicable"

The conversion price is the fixed price at which a convertible security, like a bond or preferred stock, can be exchanged for shares of common stock. It acts like a set rate that determines how many shares an investor can receive if they choose to convert their investment. This helps investors understand the value and potential benefits of converting their securities into company shares.

indenture regulatory

"in accordance with the terms of the Indenture governing the Notes"

An indenture is a legal agreement between a company that borrows money by issuing bonds and the people who buy those bonds. It explains the rules the company must follow, like paying back the money and keeping certain financial promises. This document helps both sides understand their rights and responsibilities.

the depository trust company financial

"The notice is available through The Depository Trust Company or by requesting"

The Depository Trust Company is a large organization that safely manages and keeps electronic records of ownership for stocks, bonds, and other securities. It acts like a digital warehouse, making it easier and faster for investors to buy, sell, and transfer investments without needing physical paper certificates. This helps ensure transactions are secure, accurate, and completed smoothly.

conversion agent financial

"serving as the conversion agent, at:The Bank of New York Mellon Trust Company"

A conversion agent is a third-party service that carries out and records exchanges when a security can be swapped for another — for example, turning convertible bonds or preferred shares into common stock. Think of it as the clerk at a ticket booth who verifies your voucher, gives you the new ticket, and updates the ledger; investors care because the agent controls the timing, accuracy and paperwork of conversions, which affect share counts, ownership and value.

AI-generated analysis. Not financial advice.

ENGLEWOOD, Colo., Jan. 5, 2026 /PRNewswire/ -- EchoStar Corporation (NASDAQ: SATS) (the "Company") has notified holders of its 3.875% Convertible Senior Secured Notes due 2030 (the "Notes") that the Notes are convertible, at the option of the holders (the "Conversion Option") beginning on January 1, 2026, and ending at the close of business on March 31, 2026. The Notes are convertible into cash, shares of the Company's common stock or a combination thereof, at the Company's election. Any determination regarding the convertibility of the Notes during future periods will be made in accordance with the terms of the Indenture governing the Notes.

The Notes became convertible because the last reported sale price of shares of the Company's common stock, for at least 20 trading days during the period of 30 consecutive trading days ending on, and including, the last trading day of the calendar quarter ended December 31, 2025, was greater than 130% of the conversion price in effect on each applicable trading day.

The Notes are convertible at a conversion rate of 29.73507 shares of the Company's common stock per $1,000 principal amount of Notes, which is equivalent to a conversion price of approximately $33.63 per share of common stock. A holder may surrender all or any portion of its notes for conversion in principal amounts of at least $1.00 or integral multiples of $1.00 in excess thereof.

The Company has issued a notice to holders with respect to the Conversion Option specifying the applicable terms, conditions and procedures. The notice is available through The Depository Trust Company or by requesting a copy from The Bank of New York Mellon Trust Company, N.A., which is serving as the conversion agent, at:

The Bank of New York Mellon Trust Company, N.A.
601 Travis Street, 16th floor
Houston, TX 77002
Attn: Rafael Martinez

None of the Company, its Board of Directors or its employees has made or is making any representation or recommendation to any holder as to whether to exercise or refrain from exercising the Conversion Option.

This press release is not an offer to sell, nor a solicitation of an offer to buy securities, nor shall there be any sale of these securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

About EchoStar Corporation
EchoStar Corporation (Nasdaq: SATS) is a premier provider of technology, networking services, television entertainment and connectivity, offering consumer, enterprise, operator and government solutions worldwide under its EchoStar®, Boost Mobile®, Sling TV, DISH TV, Hughes®, HughesNet®, HughesON™, and JUPITER™ brands. In Europe, EchoStar operates under its EchoStar Mobile Limited subsidiary and in Australia, the company operates as EchoStar Global Australia. For more information, visit www.echostar.com and follow EchoStar on X (Twitter) and LinkedIn.

©2025 EchoStar, Hughes, HughesNet, DISH and Boost Mobile are registered trademarks of one or more affiliate companies of EchoStar Corp.

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SOURCE EchoStar Corporation

FAQ

When can holders convert EchoStar 3.875% Notes (SATS) due 2030?

Holders may convert the Notes from January 1, 2026 through the close of business on March 31, 2026.

What is the conversion rate and conversion price for SATS convertible notes?

The conversion rate is 29.73507 shares per $1,000, equivalent to a conversion price of about $33.63 per share.

Why did EchoStar (SATS) make the 2026 conversion option available?

The Notes became convertible because the last sale price of common stock exceeded 130% of the conversion price for at least 20 of 30 trading days ending Dec 31, 2025.

Will EchoStar (SATS) pay cash or issue shares upon conversion?

Conversions may be settled in cash, shares, or a combination, at the company's election.

How can holders obtain the conversion notice and procedures for SATS notes?

The notice is available through The Depository Trust Company (DTC) or by requesting a copy from The Bank of New York Mellon Trust Company, the conversion agent.

Does EchoStar recommend whether holders should exercise the conversion option for SATS notes?

No—EchoStar, its board and employees made no recommendation to holders on whether to exercise the Conversion Option.