XM Expects to Close On its Re-Cap Jan. 28

XM Satellite Radio has completed its consent solicitation with respect to its outstanding 14 percent Senior Secured Notes due 2010. As of the expiration deadline, which was midnight Jan. 23, $300.2 million, representing 92% of the outstanding issue of Existing Notes, were tendered. Settlement and closing for the exchange offer is expected to be completed on Tuesday, Jan. 28. The company also expects to complete its concurrent $475 million financing package involving General Motors and a group of investors upon completion of the note exchange offer. Completion of these transactions is subject to customary closing conditions.
“To be able to complete $475 million in financing with General Motors and a group of new investors and $300 million tendered in the exchange offer in what is clearly a challenging capital markets environment is a testament to the strength of the XM business plan,” said XM Chairman Gary Parsons.