EchoStar Subsidiary Avoids Default with Scheduled Interest Payment

EchoStar subsidiary DISH DBS Corporation avoided default by making interest payments on its senior notes within the grace period. The company is addressing concerns raised by the FCC in May 2025 and exploring alternative solutions, although no resolution has been achieved yet. Analyst rating is a Buy with a $95.00 price target.

EchoStar subsidiary Dish DBS Corporation (DISH DBS) has successfully avoided default by making interest payments on its senior notes within the 30-day grace period. The payments, due on July 1, were made on July 30, 2025, thus preventing a potential default [1].

The company has been navigating ongoing concerns raised by the Federal Communications Commission (FCC) in May 2025. DISH DBS has been exploring alternative or complementary pathways to address these concerns, although no resolution has been achieved yet. The company remains committed to cooperating with the FCC and continues to progress its efforts to find a mutually acceptable solution [1].

In addition to addressing the FCC's concerns, DISH DBS has been facing scrutiny over its AWS-4 spectrum holdings. The FCC has urged EchoStar to sell these holdings, with FCC Chairman Brendan Carr making a "best and final" offer to EchoStar Chairman Charlie Ergen [2]. The spectrum in question is critical to DISH DBS's 5G network, with analysts estimating that the 20MHz of AWS-4 in Band 66 could fetch between $15 billion to $20 billion at a private auction [2].

Despite these challenges, investors reacted positively to DISH DBS's interest payments, with shares rising $3.31 (+11.22%) to close at $32.82 each on July 1, 2025 [1]. Analysts remain optimistic, with a Buy rating and a $95.00 price target [1].

References:
[1] https://news.bloomberglaw.com/bankruptcy-law/dish-dbs-to-make-interest-payments-on-notes-on-july-30
[2] https://www.lightreading.com/regulatory-politics/fcc-chair-urges-echostar-to-sell-spectrum-in-best-and-final-offer-report