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XM Satellite buys back $136.8 million notes, convertibles, preferreds
New York, May 8 - XM Satellite Radio Holdings Inc. said it has bought back $136.8 million of its notes, convertibles and preferred stock so far this year.
The company repurchased $2 million of its 14% senior secured notes due 2010, $94.2 million face amount of its senior discount notes, $20.9 million of its 7¾% convertible subordinated notes due 2006 and $19.7 million of its 8.25% series B convertible redeemable preferred stock.
The transactions were executed "opportunistically" to improve the company's balance sheet, said XM chairman Gary Parsons during a conference call Thursday.
By making the repurchases, XM will save $212 million of future principal, interest and dividend payments.
During the first quarter and in April, XM raised $50 million in cash under its Direct Stock Purchase Plan, issuing 9.4 million shares. Of the proceeds, $17 million was used for the de-leveraging transactions.
In January XM Satellite exchanged $300.2 million of its 14% senior secured notes for $1,459 principal amount at maturity of 14% senior secured discount notes due 2009 per $1,000 principal amount of the old notes plus warrants and $70 in cash. It also carried out a $475 million financing package with General Motors Corp. and a group of investors.
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