Sirius XM Issues Shares In Exchange For Debt

Issues 108.1 Million Shares

SIRIUS XM RADIO agreed to issue 108.1 million shares in exchange for convertible notes due in 2009 to reduce its debt obligations, the company said in a regulatory filing. REUTERS reports the filing was made with the U.S Securities and Exchange Commission on DECEMBER 22nd.

SIRIUS has about $1 billion in debt due to mature in 2009, with the first portion due in FEBRUARY.

At a meeting last week, the satellite radio company's shareholders approved proposals to issue up to 3.5 billion more shares and enact a reverse stock split, in an effort to pay down debt and shore up its battered share price.

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