Echostar gets $1.8 billion bridge loan commitment for Hughes purchase

By Sara Rosenberg

New York, Feb. 14 - Echostar Corp. has received a commitment for $1.8 billion of bridge loans to help fund its acquisition of Hughes Communications Inc., according to an 8-K filed with the Securities and Exchange Commission on Monday.

Deutsche Bank is leading the financing.

The commitment is comprised of a $1 billion senior secured bridge loan and an $800 million senior unsecured bridge loan.

Under the agreement, EchoStar is buying Hughes for $60.70 per share. The transaction is valued at $2 billion, including the refinancing of debt.

Specifically, Hughes expects to repay most of its debt, including its 9½% senior notes due 2014. The only debt expected to remain outstanding is the $115 million loan facility guaranteed by COFACE, assuming lender consents are obtained.

Closing is expected later this year, subject to certain conditions, including receipt of federal regulatory approvals. Apollo Management IV LP, which owns a majority of Hughes' outstanding stock, has approved the transaction by entering into a written shareholder consent.

EchoStar is an Englewood, Colo.-based provider of equipment sales, digital broadcast operations and satellite services. Hughes is a Germantown, Md.-based provider of broadband satellite networks and services.

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