DISH Network notes decline, EchoStar paper gains on corporate asset reshuffle

By Abigail W. Adams

Portland, Me., Jan. 10 – It was a firm day in the distressed debt space on Wednesday as markets awaited the Thursday release of the Consumer Price Index report and the launch of earnings season.

While the broader market was firm on Wednesday, it was topical news that sparked the heaviest volume and largest price movements in the distressed space.

And that movement was to the downside.

DISH Network Corp.’s senior notes issued by DISH DBS Corp. tanked in heavy volume after the company announced an asset shuffle that placed the company’s unencumbered wireless spectrum licenses outside of the reach of creditors.

The notes sank 5 to 8 points on the news.

DISH’s 7¾% senior notes due 2026 (Caa2/B-) were off as much as 10 points to trade as low as 60 early in the session, a source said.

They pared some losses as the session progressed to close the day on a 63-handle with the notes trading in the 63½ to 63¾ context.

However, the asset reshuffle was a positive for EchoStar Corp.’s 6 5/8% senior notes due 2026 (B2/CCC+), which rose in heavy volume following the announcement.

The notes gained 2 points and were trading in the 74½ to 75½ context heading into the market close.

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