Sirius Raises $175 Million; Expects 2005 Break-Even

Sirius closed its offering of 3 1/2% Convertible Notes. The net proceeds of approximately $175 million before expenses are expected to eliminate the company’s funding gap, estimated at $100 million.
Sirius says the money will fund the company to the point of “cash-flow breakeven,” which is expected in 2005 with approximately 2 million subscribers. The company expects to reach 100,000 subscribers this quarter and more than 300,000 by year-end. Sirius intends to use the net proceeds from the sale of the notes for general corporate purposes.
“Our ability to raise this capital in today’s financial markets environment is indicative of the confidence felt within the financial community about our business,” said Sirius President/CEO Joe Clayton.
“With our subscriber base more than doubling during the first quarter of this year, our automotive partners firmly on board, and the introduction of portable ‘Plug & Play’ products this summer, we are feeling a strong wind in our sails.”