EchoStar Corporation opened a conversion window for its 3.875% Convertible Senior Secured Notes due 2030 on January 1, 2026, with the option remaining available until March 31, 2026. Holders may convert the notes into cash, common stock, or a combination, using a conversion rate of 29.73507 shares per $1,000 principal, which translates to a conversion price of approximately $33.63 per share.
The window was triggered because EchoStar’s share price had exceeded 130% of the conversion price for at least 20 of the 30 trading days ending December 31, 2025. The threshold was met as the stock rallied to a 52‑week high near $112.69, a 385% return over the past year, driven largely by the company’s strategic sale of spectrum licenses to AT&T and SpaceX in late 2025, which generated more than $40 billion in liquidity and helped address looming debt maturities.
Despite the share price surge, EchoStar remains unprofitable, reporting a diluted earnings‑per‑share of –$45.32 for the twelve months ending December 31, 2025, and carrying a debt load exceeding $31 billion. The company’s 2024 revenue of $15.83 billion fell from $17.02 billion in 2023, reflecting subscriber declines in its Pay‑TV segment, while its Wireless segment showed modest growth. The conversion option therefore offers noteholders a way to convert debt into equity at a price that reflects the recent upside, while the company can reduce its debt burden if a significant portion of holders exercise the option.
For equity holders, the potential conversion of up to $31 billion of secured debt into shares could dilute existing ownership, but it also signals management’s confidence that the company’s valuation has risen sufficiently to justify converting debt into equity. The conversion window aligns with EchoStar’s broader strategy of leveraging its spectrum assets to strengthen its balance sheet and fund future growth initiatives, including the newly formed EchoStar Capital division focused on strategic investments and M&A.
The opening of the conversion window is a key event for investors monitoring EchoStar’s capital structure and debt management strategy, as it provides a tangible mechanism for noteholders to participate in the company’s upside while potentially reducing long‑term leverage.
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