| USA. XM Satellite Radio to sell $600 million in Senior Notes |
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| Tuesday, 18 April 2006 | |
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Company news: XM Satellite Radio Inc. today announced its intention to sell, subject to market and other conditions, an aggregate of $600 million principal amount of Senior Notes Due 2014 and Senior Floating Rate Notes Due 2013 to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 (the "Securities Act"). We expect to use the net proceeds to retire outstanding senior secured debt, including all or a portion of our outstanding 14% Senior Secured Discount Notes due 2009, 12% Senior Secured Notes due 2010 and Senior Secured Floating Rate Notes due 2009, which currently bear interest at 10.18%, and may prepay other existing obligations or indebtedness. The notes will be guaranteed by XM Satellite Radio Holdings Inc. (NASDAQ:XMSR) , parent of XM Satellite Radio Inc., and subsidiaries of XM Satellite Radio Inc. that guarantee other indebtedness. The interest rate and offering price are to be determined by negotiations between XM and the initial purchasers of the notes. These transactions will simplify XM's capital structure and are expected to lower XM's ongoing interest costs and extend the maturity dates of the company's debt portfolio. This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these notes. The notes being offered have not been registered under the Securities Act or any state securities laws, and may not be offered or sold in the United States absent registration under, or an applicable exemption from, the registration requirements of the Securities Act and applicable state securities laws. The notes will not be registered under the Securities Act 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 notes offering will not occur as planned. |
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| Last Updated ( Tuesday, 18 April 2006 ) |
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