Dish Network 2008 Annual Report Download - page 113

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-31
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 6 5/8% 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 1/8% Senior Notes due 2016
On February 2, 2006, we sold $1.5 billion aggregate principal amount of our ten-year, 7 1/8% Senior Notes
due February 1, 2016. Interest accrues at an annual rate of 7 1/8% and is payable semi-annually in cash, in
arrears on February 1 and August 1 of each year.
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.
The 7 1/8% Senior Notes are:
x general unsecured senior obligations of DDBS;
x ranked equally in right of payment with all of DDBS’ and the guarantors’ existing and future
unsecured senior debt; and
x ranked effectively junior to our and the guarantors’ current and future secured senior
indebtedness up to the value of the collateral securing such indebtedness.
The indenture related to the 7 1/8% Senior Notes contains restrictive covenants that, among other things,
impose limitations on the ability of DDBS and its restricted subsidiaries to:
x incur additional debt;
x pay dividends or make distribution on DDBS’ capital stock or repurchase DDBS’ capital stock;
x make certain investments;
x create liens or enter into sale and leaseback transactions;
x enter into transactions with affiliates;
x merge or consolidate with another company; and
x transfer and sell assets.
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.
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:
x general unsecured senior obligations of DDBS;
x ranked equally in right of payment with all of DDBS’ and the guarantors’ existing and future
unsecured senior debt; and
x ranked effectively junior to our and the guarantors’ current and future secured senior
indebtedness up to the value of the collateral securing such indebtedness.