EchoStar (SATS) Investor Update summary

Major Transactions and Strategic Transformation

• Announced sale of Pay-TV business (DISH DBS, including Sling TV) to DIRECTV for $1 plus assumption of net debt, with closing expected in Q4 2025 pending regulatory and noteholder approvals.

• Executed $2.5B Pay-TV financing from TPG Angelo Gordon to refinance 2024 maturities and provide interim liquidity, with first-priority lien and 11% weighted average rate in year one.

• Convertible noteholders representing over 85% agreed to exchange $4.9B–$5B of notes for new convertibles and secured notes due 2030, secured by AWS-3 and AWS-4 spectrum.

• Raised $5.1B in spectrum-backed secured notes (5-year maturity, 10.75% interest) and $400M PIPE equity at $28.04 per share, including $43.5M from CONX Corp.

• Eliminated $2.8B–$2.84B in intercompany obligations and gained access to $1.5B in Pay-TV cash flow through September 2025.

Strategic Repositioning and Growth Focus

• Refocused portfolio on wireless, broadband, and satellite connectivity, shifting away from declining Pay-TV business.

• $5.5B capital raised to invest in Boost Mobile’s 5G Open RAN network and other wireless initiatives.

• Revenue mix will shift toward retail wireless, 5G deployment, and broadband, reducing reliance on Pay-TV.

• Eliminates intercompany obligations, unencumbering $2.8B–$3.55B in spectrum assets for strategic use.

• EchoStar will become the fourth U.S. facilities-based carrier, with a strengthened capital structure and extended maturities.

Financial Impact and Deleveraging

• Consolidated debt reduced by $7B, from $21.6B to $14.6B, with $6.07B pro forma cash and $6B additional liquidity post-transaction.

• Refinancing needs through 2026 drop by $11.6B, with only $1.5B due by end of 2026.

• Intercompany obligations drop from $17.5B to $8.3B, unencumbering assets and supporting growth.

• Maturity profile extended to 2029/2030, with significant headroom for future refinancing using spectrum collateral.

• Transactions significantly reduce near-term refinancing needs and improve financial profile for aggressive competition in wireless.