EchoStar sidelines $1 billion Wednesday drive-by in wake of CFO resignation

By Paul A. Harris

St. Louis, July 21 - EchoStar DBS Corp., which was expected to price $1 billion of 10-year senior notes (existing ratings Ba3/BB-) in a quick-to-market transaction on Wednesday, sidelined the deal in the wake of CFO Michael McDonnell's Wednesday afternoon announcement that he would resign, a market source told Prospect News.

In an 8-K filing posted mid-afternoon on Wednesday with the U.S. Securities and Exchange Commission the company announced that Mcdonnell "has resigned, effective August 13, 2004. Mr. McDonnell intends for personal reasons to relocate and take a position nearer to family on the East Coast."

When contacted by Prospect News, EchoStar director of media relations Steve Caulk declined to make any comment about the bond deal.

Reading from a prepared statement Caulk said: "We are disappointed that our CFO, Michael McDonnell, has decided to relocate to the East Coast for personal reasons. We wish him the best in his new career and we will begin a search for his replacement, with the goal of finding someone equally capable."

Wachovia Securities is leading the bond deal, according to the market source who added that an investor conference call had been scheduled for 11 a.m. ET Wednesday.

Proceeds from the sale are slated to be used to repurchase or redeem all of the company's 10 3/8% senior notes due 2007.

EchoStar is a direct broadcast satellite subscription television service provider based in Englewood, Colo.

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