Sirius to issue 108.1 million shares in exchange for 2.5% convertibles

By Susanna Moon

Chicago, Dec. 22 - Sirius XM Radio Inc. plans to issue 108.1 million common shares in exchange for $15.64 million principal amount of its 2.5% convertible notes due 2009 beneficially owned by institutional holders, according to an 8-K filing with the Securities and Exchange Commission.

After the exchange, $193.588 principal amount of the notes remains outstanding.

The company said it will not receive any cash proceeds.

The transaction will reduce the company's debt and interest cost, increase equity and improve its balance sheet, the filing said.

The New York-based satellite radio provider said it may engage in additional exchanges.

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