Sirius, Lehman Re-Do Loan Terms - Radio World

Sirius, Lehman Re-Do Loan Terms

Sirius, Lehman Re-Do Loan Terms
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Sirius and Lehman have renegotiated their term loan agreement to give Sirius more flexibility to focus on the launch. The December 2002 subscriber and cash flow covenants have been eliminated. The new covenant quarterly requirements begin in Q1 of 2003 at lower thresholds than stipulated in the original agreement.
In return, Sirius has agreed to adjust the principal repayment schedule on the loan and reduce the strike price of its 2.1 million warrants to $15 per share from $29 per share. Sirius will repay an incremental $15 million in 2002 and $25 million in 2003; the amounts due in 2005 will decrease accordingly.
Subsequent to an equity offering on Jan. 3, which raised approximately $158 million gross, Sirius has a cash balance of more than $400 million today, which the company expects to last into the second quarter of 2003.

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