UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) : February 2, 2006
ECHOSTAR COMMUNICATIONS CORPORATION
(Exact name of registrant as specified in its charter)
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NEVADA
(State or other jurisdiction of
incorporation)
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0-26176
(Commission File Number)
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88-0336997
(IRS Employer
Identification No.) |
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9601 S. MERIDIAN BLVD.
ENGLEWOOD, COLORADO
(Address of principal executive offices)
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80112
(Zip Code) |
(303) 723-1000
(Registrant’s telephone number, including area code)
ECHOSTAR DBS CORPORATION
(Exact name of registrant as specified in its charter)
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COLORADO
(State or other jurisdiction of
incorporation)
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333-31929
(Commission File Number)
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84-1328967
(IRS Employer
Identification No.) |
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9601 S. MERIDIAN BLVD.
ENGLEWOOD, COLORADO
(Address of principal executive offices)
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80112
(Zip Code) |
(303) 723-1000
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
TABLE OF CONTENTS
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| Item 1.01 |
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Entry into a Material Definitive Agreement. |
On February 2, 2006, EchoStar DBS Corporation (the “Company”), an indirect wholly-owned
subsidiary of EchoStar Communications Corporation (“EchoStar”), entered into an Indenture, between
the Company, the guarantors named on the signature pages thereto and U.S. Bank National
Association, as trustee, relating to the Company’s issuance of $1.5 billion aggregate principal
amount of its 7-1/8% Senior Notes due 2016 (the “Notes”). A copy of the Indenture is attached
hereto as Exhibit 4.1 and incorporated herein by reference. For a description of the material terms
of the Indenture and the Notes, see the information set forth below under Item 2.03, which is
incorporated by reference into this Item 1.01.
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| Item 2.03 |
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Creation of a Direct Financial Obligation or an Obligation under
an Off-Balance Sheet Arrangement of a Registrant. |
On February 2, 2006, the Company sold $1.5 billion aggregate principal amount of Notes
pursuant to the Indenture. The Notes were sold in a private placement to (1) “qualified
institutional buyers” in reliance on Rule 144A under the Securities Act of 1933, as amended (the
“Securities Act”) and (2) outside the United States to persons who are not “U.S. persons” (as
defined in Rule 902 of Regulation S under the Securities Act) in compliance with Regulation S under
the Securities Act.
The Notes bear interest at a rate of 7-1/8 % per annum and mature on February 1, 2016.
Interest on the Notes will be payable semi-annually on February 1 and August 1 of each year,
starting on August 1, 2006, to the holders of record of such Notes registered at the close of
business on the January 15 or July 15, respectively, preceding such interest payment date. The
Indenture contains customary covenants that will limit the Company’s ability and, in certain
instances, the ability of certain of the Company’s subsidiaries to (i) incur additional debt; (ii)
pay dividends or make distributions on the Company’s capital stock or repurchase the Company’s
capital stock; (iii) make certain investments; (iv) create liens or enter into sale and leaseback
transactions; (v) enter into transactions with affiliates; (vi) merge or consolidate with another
company; and (vii) transfer and sell assets.
The Company, at its option, may at any time and from time to time redeem all or any portion of
the Notes on not less than 30 and not more than 60 days’ prior notice mailed to the holders of the
Notes to be redeemed. The Notes will be redeemable at a price equal to the principal amount of the
Notes being redeemed, plus accrued and unpaid interest to the date of redemption and a “make-whole”
premium calculated under the Indenture. The Company, at any time prior to February 1, 2009, may
also redeem up to 35% of the aggregate principal amount of the Notes, at a redemption price equal
to 107.125% of the principal amount of the Notes being redeemed with the net cash proceeds from
certain equity offerings or capital contributions.
The Indenture provides for customary events of default, including: nonpayment, breach of the
covenants in the Indenture, payment defaults or acceleration of other indebtedness, a failure to
pay certain judgments and certain events of bankruptcy, insolvency and reorganization. If any
event of default occurs and is continuing, the trustee or the holders of at least 25% in principal
amount of the then outstanding Notes may declare all the Notes to be due and payable immediately,
together with interest, if any, accrued thereon.
Under the terms of a Registration Rights Agreement, the Company has agreed to register notes
having substantially identical terms as the Notes with the Securities and Exchange Commission as
part of an offer to exchange freely tradable exchange notes for the Notes.
The description set forth above is qualified in its entirety by the Indenture and the
Registration Rights Agreement filed herewith as exhibits.
A copy of the Registration Rights Agreement is attached hereto as Exhibit 4.2 and incorporated
herein by reference.
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| Item 9.01 |
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Financial Statements and Exhibits. |
(d) Exhibits
2