EchoStar plans to sell $1.8 billion in bonds to help pay for its purchase of Hughes Communications.
The Douglas County-based satellite-television provider will issue $1 billion in senior secured notes and $800 million in senior unsecured notes, EchoStar said Wednesday in a statement. Proceeds will help fund the purchase price for Germantown, Md.-based Hughes and help redeem the company’s outstanding debt, the statement said.
EchoStar, which gets most of its revenue from Dish Network, is adding broadband data services with the acquisition, which is valued at about $2 billion including debt, according to a Feb. 14 statement. Charlie Ergen is the chairman of EchoStar and chief executive of Dish, the second-largest U.S. satellite-TV provider. Ergen led Dish through a $2 billion sale of 10-year notes earlier this month.
Hughes runs broadband satellite networks for businesses, governments and consumers.
