Dish Network 2007 Annual Report Download - page 118

Table of Contents
ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued
The indenture related to the 7% 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% 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.
Interest on Long
-Term Debt
Our ability to meet our debt service requirements will depend on, among other factors, the successful execution of our business strategy, which
is subject to uncertainties and contingencies beyond our control.
Capital Lease Obligations, Mortgages and Other Notes Payable
Capital lease obligations, mortgages and other notes payable consist of the following:
Capital Lease Obligations
We currently lease three in-orbit satellites. Two of these satellites, discussed below, are accounted for as capital leases pursuant to SFAS 13
and are depreciated over the ten-year terms of the satellite service agreements.
F-31
•
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.
Annual
Quarterly/Semi
-
Annual
Debt Service
Payment Dates Requirements*
3 % Convertible Subordinated Notes due 2010
June 30 and December 31
$
15,000,000
5 3/4% Senior Notes due 2008
April 1 and October 1
$
57,500,000
6 3/8% Senior Notes due 2011
April 1 and October 1
$
63,750,000
3 % Convertible Subordinated Notes due 2011
June 30 and December 31
$
750,000
6 5/8% Senior Notes due 2014
April 1 and October 1
$
66,250,000
7 1/8% Senior Notes due 2016
February 1 and August 1
$
106,875,000
7% Senior Notes due 2013
April 1 and October 1
$
35,000,000
* The table above does not include interest of $14.4 million on the 5 3/4% Convertible Subordinated Notes due 2008 which were redeemed
on February 15, 2007 (Note 5)
As of December 31,
2006 2005
(In thousands)
Satellites financed under capital lease obligations
$
404,942
$
438,062
8% note payable for EchoStar VII satellite vendor financing, payable over 13 years from launch
11,856
12,735
8% note payable for EchoStar IX satellite vendor financing, payable over 14 years from launch
8,659
9,141
6% note payable for EchoStar X satellite vendor financing, payable over 15 years from launch
13,955
—
Mortgages and other unsecured notes payable due in installments through 2017 with interest rates ranging
from approximately 2% to 13%
2,909
8,399
Total
$
442,321
$
468,337
Less current portion
(38,464
)
(36,470
)
Capital lease obligations, mortgages and other notes payable, net of current portion
$
403,857
$
431,867