EchoStar has finalized the sale of its 3.45 GHz and 600 MHz spectrum licenses to a subsidiary of AT&T Inc. on July 28, 2026. The transaction provides EchoStar with substantial proceeds, a portion of which was used to repay significant debt obligations. A key condition of the deal involved establishing a $2.4 billion trust to cover potential creditor claims related to the sold assets.
Key Details
- Transaction Value: EchoStar received proceeds of $20.25 billion in cash, with an additional $2.4 billion deposited by AT&T into a mandated FCC trust, bringing the total transaction value to $22.65 billion.
- Assets Sold: The sale includes all of EchoStar's 3.45 GHz and 600 MHz spectrum licenses and a 99-year extension for existing leases of certain wireless spectrum licenses in Hawaii for AT&T's exclusive use.
- Debt Repayment: A portion of the proceeds was used to repay debt, including the full repayment of $2 billion in 7.75% Senior Notes and the redemption of approximately $3.686 billion in 11 3/4% Senior Secured Notes.
- FCC Trust: A $2.4 billion "Wireless Creditor Trust" was funded by AT&T as a condition of FCC approval. The trust will be used to pay eligible claims against EchoStar parties related to the construction and operation of the communications network associated with the sold licenses.