DISH mixed as EchoStar cash runs short ahead of November debt payment; iHeartMedia up

By Cristal Cody

Tupelo, Miss., March 1 – EchoStar Corp. and subsidiary DISH DBS Corp. took central focus in the distressed space on Friday in the wake of the company’s earnings report and a going-concern statement from the satellite communications company’s auditor.

In EchoStar’s 10-K filed Thursday, the company said it does “not currently have the necessary cash on hand and/or projected future cash flows to fund the November 2024 debt maturity and subsequent interest on our outstanding debt.”

The 5 7/8% notes due Nov. 15, 2024 were quoted at 95¼ bid, up ½ point by the afternoon on more than $24 million of volume.

DISH’s 7¾% notes due 2026 (Caa3/CC) traded 1½ points higher at 65½ bid on $17.5 million of volume, a source said.

iHeartCommunications, Inc.’s notes improved ½ point to 1½ points in distressed trading on Friday after moving higher the previous day on the release of a weak fourth-quarter earnings report. The issuer was downgraded over the session.

iHeartCommunications’ 8 3/8% senior notes due 2027 (Caa3/CCC+) climbed 1½ points by the afternoon to 61 bid, a source said.

Trading totaled $9.6 million.

Elsewhere, S&P U.S. High Yield Corporate Distressed Bond index month-to-date total returns for February were 4.88%, improved from January returns of negative 2.15%.

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