EchoStar Corporation Announces 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 at holders' option from October 1, 2025 through the close of business on December 31, 2025. The Notes convert into cash, shares, or a combination at the company's election.

The Notes became convertible because the company's common stock closed above 130% of the conversion price for at least 20 trading days during the 30-trading-day test period ending September 30, 2025. The conversion rate is 29.73507 shares per $1,000 principal, equal to a conversion price of approximately $33.63 per share. Conversion procedures are available via DTC or the conversion agent, BNY Mellon.

Positive

• Notes became convertible after meeting the 20-of-30 trading-day price trigger
• Conversion rate: 29.73507 shares per $1,000 principal
• Conversion price approximately $33.63 per share

Negative

• Conversion window limited to Oct 1–Dec 31, 2025, creating a defined near-term dilution decision
• Company may elect cash, shares, or combination, introducing potential cash outflow or share dilution

News Market Reaction

+1.42%

1 alert

+1.42% News Effect

On the day this news was published, SATS gained 1.42%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

ENGLEWOOD, Colo., Oct. 7, 2025 /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 October 1, 2025, and ending at the close of business on December 31, 2025. 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 September 30, 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's 3.875% notes (SATS)?

Holders can convert from October 1, 2025 through the close of business on December 31, 2025.

What is the conversion rate and conversion price for EchoStar notes due 2030 (SATS)?

The conversion rate is 29.73507 shares per $1,000 principal, equal to about $33.63 per share.

Why did EchoStar's notes become convertible as of Q3 2025 (SATS)?

Because the stock's last reported sale price exceeded 130% of the conversion price for at least 20 trading days during the 30-trading-day test period ending September 30, 2025.

How will holders obtain conversion procedures for EchoStar notes (SATS)?

Conversion procedures are available through The Depository Trust Company or from the conversion agent, BNY Mellon (contact details provided).

What are the shareholder impacts if holders convert EchoStar notes (SATS)?

Conversion may lead to share dilution if paid in stock or a cash outflow if the company elects cash, depending on the company's election.