XM Announces Merger Refinancing; Tops 9.6M Subscribers
July 21, 2008 at 4:35 AM (PT)
XM SATELLITE RADIO is launching an offering of $400 million aggregate principal amount of new senior notes. The offering is part of a series of transactions to refinance certain debt of XM in connection with the pending merger with SIRIUS SATELLITE RADIO. The offering will be structured in a manner that will permit it to be unwound if the merger is not consummated. The closing of the pending merger remains subject to the approval from the FCC and satisfaction of other applicable conditions.
XM Exceeds 9.6 Million Subscribers
Meanwhile, XM has announced preliminary results for the second quarter of 2008. XM added 322,000 new net subscribers in the second quarter of 2008 for a total of 9,653,000 subscribers, a 17% increase in subscribers since the end of the second quarter of 2007. Total gross additions for the quarter were 1,081,000, including a record 857,000 OEM gross additions, the fifth consecutive quarter of record OEM gross additions, and 224,000 retail gross additions.