XM Amends Senior Notes Agreement
July 18, 2008 at 8:36 AM (PT)
XM SATELLITE RADIO HOLDINGS INC. said TODAY (7/18) it has agreed to an interest rate increase for its senior notes due 2009 upon the company's acquisition by rival SIRIUS SATELLITE RADIO INC.
The interest rate for the $400 million in 1.75% convertible senior notes due 2009 will be raised to 10% a year.
The noteholders have also agreed not to claim that the acquisition represents a "fundamental change" that would require XM to offer to repurchase the notes. As a result, XM no longer plans to offer to swap new convertible senior notes for the existing convertible notes.
XM shares fell 12 cents to $7.94 in morning trading.