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XM Prices Offering Of New Senior Notes
April 21, 2006 at 2:55 PM (PT)
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XM SATELLITE RADIO INC. has priced an offering of new senior notes, consisting of $600 million of 9.75% Senior Notes due 2014 and $200 million of Senior Floating Rate Notes due 2013. The interest rate for the floating rate notes for the initial quarterly period will be 9.6%, floating at LIBOR plus 4.5% thereafter. The new notes will be guaranteed by XM SATELLITE RADIO HOLDINGS INC. and certain subsidiaries.
XM expects to use the proceeds of the new notes offering to repurchase or redeem its 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 that is scheduled to expire on May 10, 2006, and to make a prepayment in the amount of approximately $240 million to retire approximately $320 million of fixed payment obligations that would have come due in 2007, 2008 and 2009 under XM's distribution agreement with GENERAL MOTORS.

