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Sirius Raises $175 Million as Convertible Notes Offering Closes
New York - May 29, 2003 Satellite radio broadcaster Sirius the premier closed its offering of 31/2% Convertible Notes due 2008 last Friday. The net proceeds of approximately $168,875,000, before expenses, are expected to eliminate the company's funding gap, estimated to be approximately $100 million, and fund Sirius to cash-flow breakeven, which is expected in 2005 with approximately two million subscribers. The company fully expects to reach 100,000 subscribers this quarter and more than 300,000 by year-end. Sirius intends to use the net proceeds from the sale of the notes for general corporate purposes. As previously disclosed, the notes are convertible into Sirius' common stock at the option of the holder at a conversion rate of 724.6377 shares per $1,000 principal amount, or $1.38 per share. The notes may not be redeemed at the option of Sirius prior to maturity. "Our ability to raise this capital in today's financial markets environment is indicative of the confidence felt within the financial community about our business," said Joseph P. Clayton, President & CEO of Sirius. "With our subscriber base more than doubling during the first quarter of this year, our automotive partners firmly on board, and the introduction of portable 'Plug & Play' products this summer, we are feeling a strong wind in our sails." On May 22, Standard & Poor's Ratings Services assigned its 'CCC-' rating to the 31/2% Convertible Notes, and also raised its corporate credit rating on Sirius Satellite Radio Inc. to 'CCC' from 'D', stating, "The rating actions and the stable outlook reflect the company's improved capital structure and liquidity following its recent recapitalization," according to Standard & Poors. Sirius brings listeners more than 100 streams of the best music and entertainment coast-to-coast for a monthly subscription fee of only $12.95. CommunityEmail This Article Comment On This Article Related Links SpaceDaily Search SpaceDaily Subscribe To SpaceDaily Express The latest information about the Commercial Satellite Industry
Stratos Steps Closer To Xantic Acquisition
Bethesda MD (SPX) Jan 5, 2006Stratos Global recently announced it had taken a step closer toward the completion of the acquisition of Xantic, having received positive advice from the Works' Council in the Netherlands, and executed a definitive agreement to purchase Xantic from KPN and Telstra Corporation. |
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