XM Announces Refinancing Bid
April 13, 2006 at 6:19 AM (PT)
XM SATELLITE RADIO and parent XM SATELLITE RADIO HOLDINGS are refinancing with a cash tender offer for the company's 14% Senior Secured Discount Notes due 2009, 12% Senior Secured Notes due 2010, and Senior Secured Floating Rate Notes due 2009. The move will be accompanied by a private placement of new unsecured notes to raise funds to buy the tendered notes and redeem notes not purchased in the tender offer.
The transactions are designed to replace higher-interest debt with lower-interest debt and to establish a revolving credit facility, all of which would lower interest expense and extend maturity dates for the debt as well as provide greater liquidity.