Key Developments For Sirius XM Radio Inc.
Sirius XM Radio Inc. (SIRI.O) (Nasdaq)
Eddy W. Hartenstein To Serve Non-Executive Chairman Of Sirius XM Radio Inc.'s Board Of Directors
Sirius XM Radio Inc. announced that Gary Parsons has resigned as a director and Chairman of the company's Board of Directors. The Company's Board of Directors has appointed Eddy W. Hartenstein, an independent Director, to serve as non-executive Chairman.
Sirius XM Radio Inc. Reaffirms FY 2009 Earnings Guidance; Comments On FY 2010 Guidance
Sirius XM Radio Inc. reaffirmed its fiscal 2009 guidance of over $400 million in pro forma adjusted income from operations. For fiscal 2010, it expects adjusted income from operations to increase approximately 20% and expects revenue growth of mid- to high-single digits. According to Reuters Estimates, analysts are expecting the Company to report EBITDA of $516 million on revenues of $2.641 billion for fiscal 2010.
Liberty Media Closes Investment in Sirius XM Radio Inc.; XM Satellite Radio Amends and Extends Existing Credit Facilities
Sirius XM Radio Inc. and Liberty Media Corporation (Liberty) announced the closing of the second, and final, phase of the previously announced investment by Liberty in the Company. The Company also announced that XM Satellite Radio, a wholly owned subsidiary of the Company, amended and extended its existing $350 million credit facilities. Liberty has committed to loan an additional $150 million to XM Satellite Radio, to be used to repay a portion of the outstanding principal amount of 10% convertible notes due December 1, 2009 of XM Satellite Radio Holdings Inc. Under the existing terms of their agreement, the Company has issued Liberty an aggregate of 12.5 million shares of new preferred stock convertible into 40% of the common stock of the Company.
Sirius XM Radio Inc. Postpones Filing Of Annual Report On Form 10-K
Sirius XM Radio Inc. announced that it will file a Form 12b-25 with the Securities and Exchange Commission to delay filing its Annual Report on Form 10-K for the year ended December 31, 2008. SIRIUS XM is in the process of preparing its Annual Report on Form 10-K and will file the Form 10-K no later than March 17, 2009. The Company noted that senior management has been focused on the recent refinancing transactions and needs additional time to complete its Form 10-K.
Sirius XM Radio Inc. And Liberty Media Corporation Reach Agreement For Investment
Sirius XM Radio Inc. and Liberty Media Corporation announced that they have entered into agreements pursuant to which Liberty will invest an aggregate of $530 million in the form of loans to SIRIUS XM and its subsidiaries and receive an equity interest in SIRIUS XM. Under the terms of the agreements, the investments will be funded in two separate phases. The first phase includes a $280 million senior secured loan from Liberty to SIRIUS XM, $250 million of which will be funded today. The proceeds of that loan will be used by SIRIUS XM to repay $171.6 million of its maturing 2 1/2% Convertible Notes due February 17, 2009, and the balance will be used for general corporate purposes, including working capital and transaction costs. The loan will bear interest at a rate of 15%, mature in December 2012, and be secured by the assets securing SIRIUS XM's existing term credit agreement. The second phase provides an additional loan of $150 million to XM Satellite Radio, SIRIUS XM's wholly owned subsidiary. Liberty has also agreed to offer to purchase up to $100 million of the loans outstanding under XM Satellite Radio's existing credit facilities from the lenders. Upon completion of the second phase of the Liberty investments, SIRIUS XM will issue Liberty an aggregate of 12.5 million shares of preferred stock convertible into 40% of the common stock of SIRIUS XM. In addition, Liberty will receive seats on the SIRIUS XM Board of Directors proportionate to its equity ownership.
