Dish Network 2000 Annual Report Download - page 68

ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
F–17
EchoStar II, EchoStar III, EchoStar IV and EchoStar V. To satisfy insurance covenants related to the outstanding
EDBS senior notes, as of December 31, 2000, EchoStar has reclassified approximately $82 million from cash and
cash equivalents to restricted cash and marketable investment securities on its balance sheet. The reclassification
will continue until such time, if ever, as the insurers are again willing to insure EchoStar’s satellites on
commercially reasonable terms.
4. Long-Term Debt
Debt Redemption
Effective July 14, 2000, we redeemed all of our remaining outstanding 12 7/8% Senior Secured Discount
Notes Due 2004 (the “1994 Notes”), 13 1/8% Senior Secured Discount Notes due 2004 (the “1996 Notes”), 12 1/2%
Senior Secured Notes due 2002 (the “1997 Notes”) and 12 1/8% Senior Exchange Notes Due 2004 (the “Exchange
Notes”) totaling approximately $2.6 million.
9 1/4% Seven and 9 3/8% Ten Year Notes
On January 25, 1999, EDBS sold $375 million principal amount of 9 1/4% Senior Notes due 2006 (the 9
1/4% Seven Year Notes) and $1.625 billion principal amount of 9 3/8% Senior Notes due 2009 (the 9 3/8%Ten Year
Notes). Interest accrues at annual rates of 9 1/4% and 9 3/8% on the 9 1/4% Seven Year and 9 3/8% Ten Year
Notes, respectively. Interest on the 9 1/4% Seven and 9 3/8% Ten Year Notes is payable semi-annually in cash in
arrears on February 1 and August 1 of each year, commencing August 1, 1999.
Concurrently with the closing of the 9 1/4% Seven Year Notes and 9 3/8% Ten Year Notes offering,
EchoStar used approximately $1.658 billion of net proceeds received from the sale of the 9 1/4% Seven and 9 3/8%
Ten Year Notes to complete tender offers for its outstanding 1994 Notes, 1996 Notes and 1997 Notes. In February
1999, EchoStar used approximately $268 million of net proceeds received from the sale of the 9 1/4% Seven and 9
3/8% Ten Year Notes to complete the tender offers related to the 12 1/8% Senior Exchange Notes due 2004, issued
on January 4, 1999, in exchange for all issued and outstanding 12 1/8% Series B Senior Redeemable Exchangeable
Preferred Stock.
With the exception of certain de minimis domestic and foreign subsidiaries, the 9 1/4% Seven and 9 3/8%
Ten Year Notes are fully, unconditionally and jointly and severally guaranteed by all subsidiaries of EDBS. The
9 1/4% Seven and 9 3/8% Ten Year Notes are general senior unsecured obligations which:
• rank pari passu in right of payment to each other and to all existing and future senior unsecured
obligations;
• rank senior to all existing and future junior obligations; and
• are effectively junior to secured obligations to the extent of the collateral securing such obligations,
including any borrowings under future secured credit facilities.
Except under certain circumstances requiring prepayment premiums, and in other limited circumstances,
the 9 1/4% Seven and 9 3/8% Ten Year Notes are not redeemable at EDBS’s option prior to February 1, 2003 and
February 1, 2004, respectively. Thereafter, the 9 1/4% Seven Year Notes will be subject to redemption, at the
option of EDBS, in whole or in part, at redemption prices decreasing from 104.625% during the year commencing
February 1, 2003 to 100% on or after February 1, 2005, together with accrued and unpaid interest thereon to the
redemption date. The 9 3/8% Ten Year Notes will be subject to redemption, at the option of EDBS, in whole or in
part, at redemption prices decreasing from 104.688% during the year commencing February 1, 2004 to 100% on or
after February 1, 2008, together with accrued and unpaid interest thereon to the redemption date.