XM Completes Debt Offering
May 1, 2006 at 11:40 AM (PT)
XM SATELLITE RADIO, INC. has completed its $800 million debt offering ($600 million 9.75% Senior Notes due 2014 and $200 million Senior Floating Rate Notes due 2013). As previously announced, XM is using the proceeds to repurchase or redeem existing outstanding 14% Senior Secured Notes due 2009, 12% Senior Secured Notes due 2010 and Senior Secured Floating Rate Notes due 2009, which are the subject of a cash tender offer scheduled to expire on MAY 10, 2006, and to make a prepayment of $240 million to retire approximately $320 million of fixed payment debt obligations to GENERAL MOTORS.
The initial repurchase of existing notes has been completed (about $110.2 million of 14% Senior Secured Notes, $99.6 million of 12% Senior Secured Notes and $180.4 million of Senior Secured Floating Rate Notes); XM has commenced the redemption of the remaining 14% Senior Secured Notes and Senior Secured Floating Rate Notes, which XM has the right to redeem. The redemption is expected to be completed by the end of MAY.