XM Satellite Radio Holdings Inc. had announced that it has priced a public offering of 7,500,000 shares of its Class A Common Stock at a per share price of $10.1875 and $125 million of 7.75% Convertible Subordinated Notes due 2006. The notes will be convertible into shares of Class A common stock at a conversion price of approximately $12.22 per share.The offering raises a total of $201.4 million. The proceeds will be used primarily for marketing, systems, and other general corporate purposes, and are expected to fund company operations into 2002.
The company also granted the underwriters an option to purchase up to an additional 1,125,000 shares of Class A common stock and up to an additional $18.75 million of 7.75% convertible subordinated notes to cover over-allotments. All of the securities were offered by the company.
The offerings were undertaken pursuant to the company's shelf Registration Statement filed with the Securities and Exchange Commission for the public offering from time to time of up to $500 million of the Company's debt and equity securities. The specific terms of other securities that may be issued under the shelf Registration Statement will be determined at the time of each issuance.
The offerings were managed by Bear, Stearns & Co. Inc. A copy of the prospectuses relating to the offerings can be obtained from Bear, Stearns & Co. Inc., 245 Park Avenue, New York, NY 10167.
XM will create and package up to 100 channels of digital-quality sound and provide coast-to-coast coverage of music, news, sports, talk, comedy and children's programming. XM won several awards at the International Consumer Electronics Show in January, including "Best of CES" in the automotive category. XM's first satellite is scheduled to launch March 18 and its second satellite in early May. Service is scheduled to begin this summer.
XM's strategic investors include America's leading car, radio and satellite TV companies -- General Motors, American Honda Motor Co. Inc., Clear Channel Communications, DIRECTV and Motient Corporation, the company's largest shareholder. XM has a long-term distribution agreement with General Motors to integrate XM-ready radios into its vehicles commencing in 2001. XM-ready radios will be manufactured by such household names as Sony, Alpine, Pioneer, Clarion, Blaupunkt, Delphi-Delco, Visteon and Panasonic, and Sanyo, and sold by automotive and retail outlets such as Best Buy, RadioShack, Circuit City and Sears.
Link for more info: www.xmradio.com
