Dish Network 2010 Annual Report Download - page 111

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-26
9. Long-Term Debt
6 Ǫ% Senior Notes due 2011
The 6 % Senior Notes mature October 1, 2011. Interest accrues at an annual rate of 6 % and is payable
semi-annually in cash, in arrears on April 1 and October 1 of each year.
The 6 % Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100%
of their principal amount plus a “make-whole” premium, as defined in the related indenture, together with
accrued and unpaid interest.
The 6 % Senior Notes are:
• general unsecured senior obligations of DISH DBS Corporation (“DDBS”);
• ranked equally in right of payment with all of DDBS’ and the guarantors’ existing and future
unsecured senior debt; and
• 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 6 % Senior Notes contains restrictive covenants that, among other things,
impose limitations on the ability of DDBS and its restricted subsidiaries to:
• incur additional indebtedness or enter into sale and leaseback transactions;
• pay dividends or make distribution on DDBS’ capital stock or repurchase DDBS’ capital stock;
• make certain investments;
• create liens;
• enter into transactions with affiliates;
• merge or consolidate with another company; and
• transfer or 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 6 % 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
The 7% Senior Notes mature 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.
The 7% Senior Notes are:
• general unsecured senior obligations of DDBS;
• ranked equally in right of payment with all of DDBS’ and the guarantors’ existing and future
unsecured senior debt; and
• ranked effectively junior to our and the guarantors’ current and future secured senior
indebtedness up to the value of the collateral securing such indebtedness.