EchoStar Completes $20.25B Spectrum Sale to AT&T; Redeems Debt

What Happened

• On July 28, 2026 EchoStar Corporation closed the previously announced License Purchase Agreement with AT&T Mobility II LLC, selling all of EchoStar’s 3.45 GHz and 600 MHz spectrum licenses and entering 99‑year lease extensions for certain Hawaii spectrum.
• At closing EchoStar (and related seller parties) received $20,250,000,000 in purchase proceeds and the buyer deposited an additional $2,400,000,000 into a mandated FCC Trust (the “Wireless Creditor Trust”) to cover certain future claims related to the sold licenses.
• The closing also triggered substantial debt payoffs: DISH DBS Corporation fully repaid its 7.75% Senior Notes due July 1, 2026 (aggregate $2,000,000,000 principal plus accrued interest) on July 28, 2026 (repayment authorized by the U.S. Bankruptcy Court for the Southern District of Texas). Additionally, outstanding amounts under a 2021 Loan and Security Agreement were satisfied and approximately $3.686 billion (inclusive of early redemption premium and accrued interest) of 11.75% Senior Secured Notes due November 15, 2027 were redeemed.

Key Details

• Purchase price received by EchoStar at closing: $20,250,000,000.
• FCC Trust funded at closing by buyer: $2,400,000,000 (Wireless Creditor Trust; established June 26, 2026).
• DISH DBS 7.75% Senior Notes repaid in full on July 28, 2026: $2,000,000,000 principal + accrued interest; court‑authorized in ongoing DISH DBS restructuring.
• Redemption of ~$3.686 billion of 11.75% Senior Secured Notes (includes early redemption premium and accrued interest).

Why It Matters

• The transaction delivers a very large, immediate cash inflow ($20.25B) and materially reduces EchoStar/DISH‑related leverage by enabling full repayment/redemption of several near‑term debt obligations, which can improve liquidity and reduce interest expense risk.
• The $2.4B FCC Trust limits EchoStar’s exposure for certain future claims related to the sold spectrum (trust pays eligible claims in defined tiers and will terminate when claims are satisfied or after up to five years), addressing regulatory and creditor protection requirements needed for FCC approval.
• Investors should view this as a major portfolio and capital‑structure event—a significant asset sale plus related debt de‑risking—while noting some repayments were tied to DISH DBS’s court‑supervised restructuring.