Sirius Satellite Radio has announced that Blackstone Capital Partners III will purchase $200 million of newly-issued preferred stock in the company. The junior convertible preferred stock has a 9.2 percent annual dividend and is convertible into common stock at a price of $34 per common share. The transaction, which is subject to customary closing conditions, is expected to close by mid-January 2000. The proceeds will be used for the continued buildout of Sirius Radio's broadcasting system and for general corporate purposes. To date, Sirius has raised $1.2 billion in capital."Sirius Radio will provide a superior product offering to American consumers," states Mark T. Gallogly, senior managing director of The Blackstone Group. "David Margolese is building a great company and we are delighted to support him and his team."
"Blackstone has a preeminent reputation and a successful record in telecommunications investments," explains Sirius chairman and chief executive officer David Margolese. "We are delighted to have them as an investor in Sirius, partnering with us to bring the first digital satellite radio service to motorists throughout the United States.
Sirius recently announced a number of significant developments as it moves towards commencement of service. The company has completed construction of its National Broadcast Studio in New York City, one of the largest and most sophisticated of its type in the world. Sirius has announced agreements with critically-acclaimed artists and on-air personalities, including Sting, grandmaster Flash, and MC Lyte, who will have regularly scheduled programs on Sirius Radio.
Link for more info: www.siriusradio.com
