US-based communication and satellite company EchoStar (ECHO.US) received a much-needed cash infusion after completing a deal to sell spectrum with almost 85,000 prepaid customers in Puerto Rico and Virgin Islands to Liberty Latin America in valued at $225 million deal (annual installments). The first $95 million were paid yesterday, after the announcement. Liberty Latin America will fund the deal by liquidity sources including cash and credit facilities.
- The company bought more than 100MHz of Echostar spectrum, along with the opportunity “to drive fixed-mobile convergence penetration from current levels of around 25 percent”. As for now, Echostar stays on a very high debt-pile, needing to pay off $2 billion in debt maturity by 24 November.
- Wireless and Broadband company sectors are dragging the business down, while the company is in the search to monetize other business segments, as well as licenses worth appx. $20 billion. The stock is up more than 30% this year, as investors see rising chances for the company profitability - if it will not go bankrupt.
Echostar (SATS.US), W1 interval
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Open account Try demo Download mobile app Download mobile appEchostar gains almost 12% today, rising above SMA200 on a weekly interval time frame, potentially reversing the downward trend.
Source: xStation5
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