Echostar Communications Corp, the satellite television outfit that filed suit against News Corp in May after it balked on a deal to acquire half the company and reneged on a $200m loan agreement (CI No 3,158), has found another way to raise the money it needs to keep going. The Englewood, Colorado company says it will raise the $200m in an offering of 12.125% senior redeemable exchangeable series B preferred stock. The stock is exchangeable into debt at any time after issuance and is mandatorily redeemable by Echostar in 2004. Proceeds from the offering will be used to expand Echostar’s subscriber base, marketing expenses and general corporate purposes.
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