Stock market today: Nasdaq closes above 23,000 for first time as tech rebounds
ENGLEWOOD, Colo. - EchoStar Corporation (NASDAQ:SATS), whose stock has surged over 262% in the past six months according to InvestingPro data, announced Tuesday that holders of its 3.875% Convertible Senior Secured Notes due 2030 may convert their notes into cash, shares of common stock, or a combination thereof at the company’s discretion during the current quarter.
The conversion period runs from October 1 through December 31, 2025. According to a company press release, the notes became eligible for conversion because EchoStar’s stock price exceeded 130% of the conversion price for at least 20 trading days during the 30 consecutive trading days ending September 30. Trading near its 52-week high of $85.37, InvestingPro analysis suggests the stock is currently in overbought territory.
The notes are convertible at a rate of 29.73507 shares per $1,000 principal amount, equivalent to a conversion price of approximately $33.63 per share. Holders may convert notes in principal amounts of at least $1.00 or integral multiples above that amount.
EchoStar has issued a formal notice to noteholders specifying the terms, conditions, and procedures for conversion through The Depository Trust Company. The Bank of New York Mellon Trust Company is serving as the conversion agent.
The company stated it is not making any recommendations to holders regarding whether to exercise the conversion option.
EchoStar Corporation provides technology, networking services, and television entertainment under various brands including EchoStar, Boost Mobile, Sling TV, DISH TV, and Hughes. With a market capitalization of $21.7 billion, the company faces challenges with significant debt levels and weak profit margins. Discover more insights about SATS and 1,400+ other stocks with comprehensive Pro Research Reports, available exclusively on InvestingPro.
In other recent news, EchoStar Corporation has entered into a definitive agreement to sell its AWS-4 and H-block spectrum licenses to SpaceX for approximately $17 billion. This significant transaction includes up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock, with SpaceX also committing to fund about $2 billion in cash interest payments on EchoStar debt through November 2027. Additionally, there have been reports that Verizon Communications is in discussions to purchase EchoStar’s AWS-3 licenses, which are used for 5G wireless signals. In a related development, EchoStar has terminated a major C$1.8 billion satellite contract with MDA Space Ltd, leading RBC Capital to lower its price target for MDA Space to C$45.00 from C$53.00 while maintaining an Outperform rating. The cancellation was attributed to a change in EchoStar’s business strategy. These developments underscore EchoStar’s strategic shifts and the evolving landscape in the telecommunications sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.