Long-Term Debt and Finance Lease Obligations

9 Months Ended

Sep. 30, 2022

Long-Term Debt and Finance Lease Obligations

Long-Term Debt and Finance Lease Obligations

8. Long-Term Debt and Finance Lease Obligations

Fair Value of our Long-Term Debt

The following table summarizes the carrying amount and fair value of our debt facilities as of September 30, 2022 and December 31, 2021:

	As of
	September 30, 2022				December 31, 2021
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In thousands)
5 7/8% Senior Notes due 2022 (1)	$	—	$	—	$	2,000,000	$	2,039,700
5% Senior Notes due 2023 (2)		1,500,000		1,474,080		1,500,000		1,541,670
5 7/8% Senior Notes due 2024		2,000,000		1,789,840		2,000,000		2,060,180
7 3/4% Senior Notes due 2026		2,000,000		1,538,100		2,000,000		2,122,700
5 1/4% Senior Secured Notes due 2026 (3)		2,750,000		2,279,503		2,750,000		2,792,900
7 3/8% Senior Notes due 2028		1,000,000		677,730		1,000,000		1,017,060
5 3/4% Senior Secured Notes due 2028 (3)		2,500,000		1,906,050		2,500,000		2,520,650
5 1/8% Senior Notes due 2029		1,500,000		891,195		1,500,000		1,365,645
Other notes payable		21,012		21,012		21,012		21,012
Subtotal		13,271,012	$	10,577,510		15,271,012	$	15,481,517
Unamortized deferred financing costs and debt discounts, net		(37,059)				(42,547)
Finance lease obligations (4)		78,142				109,164
Total long-term debt and finance lease obligations (including current portion)	$	13,312,095			$	15,337,629

(1) As of July 15, 2022, we had repurchased or redeemed the principal balance of our 5 7/8% Senior Notes due 2022.

(2) Our 5% Senior Notes due 2023 mature on March 15, 2023 and have been reclassified to “Current portion of long-term debt and finance lease obligations” on our Condensed Consolidated Balance Sheets as of September 30, 2022.

(3) The net proceeds from the offering of our Senior Secured Notes (defined herein) were used to make an intercompany loan to DISH Network pursuant to a Loan and Security Agreement dated November 26, 2021 (together with potential future advances to DISH Network, the “Intercompany Loan”) between us and DISH Network in order to finance the purchase of wireless spectrum licenses and for general corporate purposes, including the buildout of wireless infrastructure. See Note 13 Related Party Transactions for further information.

(4) Disclosure regarding fair value of finance leases is not required.

We estimated the fair value of our publicly traded long-term debt using market prices in less active markets (Level 2).

Future Liquidity

We have made cash distributions and the Intercompany Loan to partially finance the development of DISH Network’s 5G Network Deployment, including, but not limited to, the purchase of wireless spectrum licenses and the retail wireless business to date, and we may make additional funds available to DISH Network in the form of cash distributions or loans to finance, in whole or in part, DISH Network’s future efforts. These factors, including, but not limited to, debt maturities, continuing investment in our business, financing acquisitions and other strategic transactions, may require us to raise additional capital in the future which may not be available on acceptable terms, or at all.