Dish Network 2001 Annual Report Download - page 91

ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
F–26
which EchoStar is unable to amend, or 3) present to Hughes a plan, taking into account prevailing market conditions
for the relevant notes, designed so that at and after the effective time of the Hughes merger, the surviving corporation
and its subsidiaries would not be in breach of their obligations under those indentures.
Mortgages and Other Notes Payable
Mortgages and other notes payable consists of the following (in thousands):
December 31,
2000 2001
8.25% note payable for satellite vendor financing for EchoStar I due in equal monthly
installments of $722, including interest, through February 2001............................. $ 2,137 $ –
8.25% note payable for satellite vendor financing for EchoStar II due in equal monthly
installments of $562, including interest, through November 2001............................ 5,930 –
8.25% note payable for satellite vendor financing for EchoStar III due in equal
monthly installments of $294, including interest, through October 2002.................. 5,978 2,829
8.25% note payable for satellite vendor financing for EchoStar IV due upon resolution
of satellite insurance claim (Note 3) ....................................................................... 11,327 11,327
Mortgages and other unsecured notes payable due in installments through August
2020 with interest rates ranging from 2% to 10%.................................................... 10,572 7,106
Total ........................................................................................................................ 35,944 21,262
Less current portion .................................................................................................. (21,132) (14,782)
Mortgages and other notes payable, net of current portion .......................................... $ 14,812 $ 6,480
Future maturities of EchoStar’s outstanding long-term debt are summarized as follows (in thousands):
December 31,
2002 2003 2004 2005 2006 Thereafter Total
9 1/4% Seven Year Notes .... $ – $ – $ – $ – $ 375,000 $ – $ 375,000
9 3/8% Ten Year Notes........ – – – – – 1,625,000 1,625,000
10 3/8% Seven Year Notes .. – – – – – 1,000,000 1,000,000
9 1/8% Seven Year Notes .... – – – – – 700,000 700,000
4 7/8% Convertible Notes .... – – – – – 1,000,000 1,000,000
5 3/4% Convertible Notes .... – – – – – 1,000,000 1,000,000
Mortgages and Other Notes
Payable ............................ 14,782 1,992 723 753 798 2,214 21,262
Total.................................... $ 14,782 $ 1,992 $ 723 $ 753 $ 375,798 $ 5,327,214 $ 5,721,262
Satellite Vendor Financing
The purchase price for satellites is required to be paid in progress payments, some of which are non-
contingent payments that are deferred until after the respective satellites are in orbit (satellite vendor financing).
EchoStar utilized $36 million, $28 million, $14 million and $13 million of satellite vendor financing for EchoStar I,
EchoStar II, EchoStar III and EchoStar IV, respectively. The satellite vendor financings for both EchoStar III,
EchoStar IV and EchoStar VII are secured by an ECC corporate guarantee.
Bridge Financing Commitments
As previously discussed, EchoStar and Hughes have obtained $5.525 billion in bridge financing commitments
for the Hughes merger and related transactions. This commitment has been reduced to $3.325 billion as a result of the
sale the 9 1/8% Senior Notes due 2009 by EDBS on December 28, 2001 and the closing of the $1.5 billion equity
investment in EchoStar as part of EchoStar’s strategic alliance with Vivendi on January 22, 2002.
In consideration for the bridge financing commitments, EchoStar is obligated to the lenders for the following
non-refundable fees whether or not the Hughes merger or PanAmSat acquisition are ever consummated: