XM Satellite Radio Holding's Inc. has announced that it has completed a $325 million high yield offering, consisting of 14% Senior Secured Notes due 2010, with attached warrants to purchase approximately 2.6 million shares of XM Radio's Common Stock. A portion of the net proceeds will be reserved to provide for payment in full of interest on the notes for the first six scheduled payments.To date, the net proceeds from XM Satellite Radio's five successful offerings represents $865 million. The proceeds from the recent high yield offering will be used for the continued development and build-out of the XM Radio system.
"We are especially pleased that we were able to upsize the debt offering from a proposed $250 to $325 million as a result of increased demand. The funds raised will bring us substantially closer to our pre-launch financing goal," said Hugh Panero, XM Radio's president and chief executive officer.
The initial purchasers of the XM securities are Bear, Stearns & Co. Inc., Donaldson, Lufkin & Jenrette, Salomon Smith Barney and Lehman Brothers. The securities were offered by the initial purchasers solely to certain qualified institutional buyers pursuant to Rule 144A and to certain accredited investors, have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act. XM Satellite Radio will deliver up to 100 channels of digital-quality sound coast-to-coast directly from its satellites to listeners in their cars and at home. XM Satellite Radio plans to offer an innovative mix of music, talk, news, sports and children's formats for $9.95 a month.
Link for more info: www.xmradio.com
