Sirius Satellite Radio Completes Merger With XM Satellite Radio And Prices Equity Offerings; Reiterates FY 2009 EBITDA Outlook
7:30am EDT
Sirius Satellite Radio announced that it has completed their merger, resulting in the nation's premier radio Company. The new Company plans to change its corporate name to SIRIUS XM Radio Inc. The combined Company's stock will continue to be traded on the Nasdaq Global Select Market under the symbol SIRI. The Company also announced offering of shares of its common stock. A total of 262,399,983 shares of common stock are being offered, which shares will be lent by SIRIUS to affiliates of Morgan Stanley & Co. Incorporated and UBS Investment Bank, the share borrowers, pursuant to share lending agreements between SIRIUS and each of the share borrowers. Of the 262,399,983 shares offered, 183,679,988 shares are being offered at a fixed price of $1.50 per share and the remaining 78,719,995 shares are expected to be offered from time to time after the fixed price offering at prevailing market or negotiated prices. While the borrowed shares will be considered issued and outstanding for corporate law purposes, SIRIUS believes that under U.S. generally accepted accounting principles currently in effect, the borrowed shares will not be considered outstanding for the purpose of computing and reporting earnings (loss) per share because the borrowed shares are required to be returned to SIRIUS. The Company also announced that for fiscal 2009, it continues to expects adjusted EBITDA of over $300 million.
Sirius Satellite Radio Issues Q2 2008 Outlook; Revenue Outlook In Line With Analysts' Estimates
Monday, 28 Jul 2008 06:45am EDT
Sirius Satellite Radio announced that for the second quarter of 2008, total revenue is expected to be approximately $283 million, an increase of 25% from the second quarter of 2007 total revenue of $226 million, adjusted loss from operations is expected to be approximately $24 million, an improvement of 70% from the adjusted loss from operations of $79 million in the second quarter of 2007. According to Reuters Estimates, analysts were expecting the Company to report revenue of $284 million for the same period.
Sirius Satellite Radio Announces Equity Offerings
Monday, 28 Jul 2008 06:45am EDT
Sirius Satellite Radio announced the commencement of an offering of shares of its common stock. The common stock being offered represent shares of SIRIUS common stock that SIRIUS will be lending to affiliates of Morgan Stanley & Co. Incorporated and UBS Investment Bank, the share borrowers, pursuant to share lending agreements between SIRIUS and each of the share borrowers. It is estimated that, based on current market values, approximately $375,000,000 of SIRIUS common stock will be sold in a fixed-price public offering described below, and up to approximately $65,000,000 of SIRIUS common stock will be sold as described below from time to time at prevailing market or negotiated prices. The exact number of shares of SIRIUS common stock to be offered will depend on the terms of the concurrent offering of exchangeable senior subordinated notes described below and the hedging to be conducted by investors in such notes. While the borrowed shares will be considered issued and outstanding for corporate law purposes, SIRIUS believes that under U.S. generally accepted accounting principles currently in effect, the borrowed shares will not be considered outstanding for the purpose of computing and reporting earnings (loss) per share because the borrowed shares are required to be returned to SIRIUS.
XM Satellite Radio Inc. And Sirius Satellite Radio Pay $19 Million To Settle FCC Issues-Reuters
Thursday, 24 Jul 2008 09:01am EDT
Reuters reported that XM Satellite Radio Inc. and Sirius Satellite Radio said they could pay up to $19 million to settle past compliance issues with federal regulators, a move that helps clear the way for U.S. Federal Communications Commission approval of their merger. The two companies confirmed they are in talks with the FCC's enforcement bureau to settle outstanding enforcement issues regarding the compliance of certain radios that include FM transmitters, along with other matters. XM Satellite Radio Inc. and Sirius Satellite Radio said that as part of a possible consent decree, they expect to make voluntary contributions to the U.S. Treasury of $17 million and $2 million, respectively.
FCC Reaches Tentative Deal To Approve XM Satellite Radio Inc. And Sirius Satellite Radio Merger-WSJ
Wednesday, 23 Jul 2008 02:34pm EDT
The Wall Street Journal reported that a tentative deal has been reached by a majority of commissioners at the Federal Communications Commission (FCC)to approve the merger of Sirius Satellite Radio and XM Satellite Radio Inc. Republican commissioner Deborah Taylor Tate is the only FCC member left to vote on the deal and she is expected to do so shortly. Taylor Tate is expected to sign off on the deal in exchange for a consent decree that resolves several enforcement issues involving the satellite radio companies and a combined fine of about $20 million, according to an FCC source close to the deal. Ms. Tate has also asked for a variety of other minor conditions, an FCC source said. An adviser to Ms. Exact details about the deal are not known since FCC officials and lawyers for the companies appear to still be working them out.