WASHINGTON, April 21 /PRNewswire-FirstCall/ -- XM Satellite Radio Holdings Inc. announced today that its subsidiary, XM Satellite Radio Inc., 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.
The closing is expected to occur on Monday, May 1, 2006, subject to customary closing conditions.
The notes will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act and applicable state securities laws. This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these notes. The information in this news release is forward-looking, and is subject to the risk that some or all of the proposed transactions will not occur as planned.
