XM Canada buys back $21.2 million in 12¾% notes for $4.6 million

By Devika Patel

Knoxville, Tenn., April 14 - Canadian Satellite Radio Holdings Inc. announced that its subsidiary, XM Canada, has repurchased approximately $21.2 million of its outstanding high-yield debt for $4.6 million.

The debt was part of a $100 million issue of 12¾% senior notes due 2014.

The repurchase was completed with approximately $1.8 million cash and $2.8 million of subordinated notes.

The subordinated notes mature in 2016 and carry a blended interest cost of approximately 9%.

"Our underlying goal is to reduce costs and deliver long-term profitability for our shareholders," XM Canada's chief financial officer Michael Washinushi said in a press release.

"This was an opportune time for us to take this action in support of that objective. As a result, we have been able to reduce our long-term debt and debt servicing costs, strengthen our balance sheet and improve our overall financial picture."

Based in Toronto, Canadian Satellite Radio is a provider of satellite radio service.

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