Sirius Misses Payment

Sirius Satellite Radio has confirmed it missed an interest payment worth approximately $720,000 on its 83/4% Convertible Subordinated Notes due 2009 – that were “technically” due Sept. 30. In a statement, Sirius said it’s talking to stakeholders regarding a substantial recapitalization of the company.
“While there is no assurance that a financing agreement will be achieved, the company is hopeful that an announcement regarding a transaction can be made shortly,” stated Sirius.
The company said it has approximately $250 million in cash on hand, sufficient to fund its operations into the second quarter of 2003. Sirius stated: “The failure to pay this interest will not constitute an ‘Event of Default’ until Oct. 31, 2002, and will have no effect upon the company’s other indebtedness during this grace period. If an agreement is consummated prior to the expiration of this grace period, Sirius expects the disposition of this interest payment will be addressed as part of this arrangement.
The company retired a majority of these Convertible Notes during 2000 and 2001. There is currently approximately $16,000,000 in aggregate principal amount of these Convertible Notes outstanding.”