Dish Network 2007 Annual Report Download - page 117

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Table of Contents
ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued
February 1 and August 1 of each year, commencing on August 1, 2006. The proceeds from the sale of the notes were used to redeem our
outstanding 9 1/8% Senior Notes due 2009 and for other general corporate purposes.
The 7 1/8% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a
“make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. Prior to February 1, 2009, we may also
redeem up to 35% of each of the 7 1/8% Senior Notes at specified premiums with the net cash proceeds from certain equity offerings or capital
contributions.
The 7 1/8% Senior Notes are:
The indenture related to the 7 1/8% Senior Notes contains restrictive covenants that, among other things, impose limitations on the ability of
EDBS and its restricted subsidiaries to:
In the event of a change of control, as defined in the related indenture, we would be required to make an offer to repurchase all or any part of a
holder’s 7 1/8% Senior Notes at a purchase price equal to 101% of the aggregate principal amount thereof, together with accrued and unpaid
interest thereon, to the date of repurchase.
7% Senior Notes due 2013
On October 18, 2006, we sold $500.0 million aggregate principal amount of our seven-year, 7% Senior Notes due October 1, 2013. Interest
accrues at an annual rate of 7% and is payable semi-
annually in cash, in arrears on April 1 and October 1 of each year, commencing on April 1,
2007. The proceeds from the sale of the notes replaced the cash on hand that was used to redeem our outstanding Floating Rate Senior Notes
due 2008 on October 1, 2006.
The 7% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a
“make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. Prior to October 1, 2009, we may also
redeem up to 35% of each of the 7% Senior Notes at specified premiums with the net cash proceeds from certain equity offerings or capital
contributions.
The 7% Senior Notes are:
F-30
•
general unsecured senior obligations of EDBS;
•
ranked equally in right of payment with all of EDBS
’
and the guarantors
’
existing and future unsecured senior debt;
• ranked effectively junior to our and the guarantors’ current and future secured senior indebtedness up to the value of the collateral
securing such indebtedness.
•
incur additional debt;
•
pay dividends or make distribution on EDBS
’
capital stock or repurchase EDBS
’
capital stock;
•
make certain investments;
•
create liens or enter into sale and leaseback transactions;
•
enter into transactions with affiliates;
•
merge or consolidate with another company; and
•
transfer and sell assets.
•
general unsecured senior obligations of EDBS;
•
ranked equally in right of payment with all of EDBS
’
and the guarantors
’
existing and future unsecured senior debt;
• ranked effectively junior to our and the guarantors’ current and future secured senior indebtedness up to the value of the collateral
securing such indebtedness.