EchoStar, Dish Skip July Interest Payments Amid FCC License Probe

EchoStar Corp. announced it will make overdue interest payments totaling over $500 million on its 2029 Spectrum Notes and subsidiary Dish DBS notes within the 30-day grace periods to avoid default, following a regulatory review by the Federal Communications Commission (FCC) concerning the company's spectrum licenses. However, EchoStar plans to skip two interest payments due July 1 on its 2026 and 2028 senior notes, invoking another 30-day grace period amid ongoing uncertainty from the FCC investigation. The FCC's probe into EchoStar's compliance with federal requirements to build a nationwide 5G network has frozen the company’s strategic decision-making, especially regarding its Boost Mobile business and network buildout. EchoStar is reportedly considering a Chapter 11 bankruptcy filing to protect its wireless spectrum licenses from potential revocation by the FCC. Despite no agreement yet with the FCC, EchoStar's chairman met with FCC Chairman Brendan Carr, and President Donald Trump has urged both parties to reach a resolution. The company continues to evaluate its resources and options as regulatory challenges persist, impacting its debt securities and market reactions.