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XM Satellite Radio settles $489.07 million 11¼% notes tendered to date
By Susanna Moon
Chicago, Oct. 27 - XM Satellite Radio Inc., a wholly owned subsidiary of Sirius XM Radio, said it exercised the early purchase option on the cash tender offer for its 11¼% senior secured notes due 2013.
XM said it will purchase all $489,065,000 principal amount of its outstanding 11¼% notes tendered by 5 p.m. ET on Oct. 26, the consent payment deadline.
Payment for the notes will be made on Oct. 27.
Based on the amount of tendered notes, XM has received the required consents to amend the notes to eliminate most of the restrictive covenants and events of default.
XM also closed its $700 million of 7 5/8% senior notes due 2018. The company needed proceeds of at least $550 million from a private offering of new notes to complete the tender offer.
The tender offer will expire at midnight ET on Nov. 9.
Tendered notes may no longer be withdrawn.
The total payout for each $1,000 principal amount of notes will be $1,120, which includes a consent payment of $20 per $1,000 of notes.
Holders who tender their notes after the consent deadline but at or before the expiration time will receive only the tender offer consideration of $1,100 per $1,000 of notes.
In addition, the company will pay interest accrued from the last interest payment date to, but not including, the payment date.
J.P. Morgan Securities LLC (800 245-8812 or 212 270-1200) is the dealer manager for the tender offer and solicitation agent for the consent solicitation. Global Bondholder Services Corp. (866 294-2200) is the depositary and information agent.
Sirius XM is a satellite radio provider based in New York.
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