# XM Eliminates $135 Million in Debt



## Chris Blount (Jun 22, 2001)

XM Satellite Radio said it eliminated $135 million of debt, including repayment of $81.2 million of debt using proceeds of an equity offering completed in January and conversion of the remainder.

The company had said previously that proceeds of its January equity offering would be used to retire debt.

Holders of $45.7 million of the company's 7.75-percent subordinated convertible notes due 2006 called for redemption following the company's January offering elected to convert into 3.7 million shares of the company's class A common stock. This represents the retirement of all remaining outstanding 7.75-percent subordinated convertible notes, XM said.

The company also said it completed the redemption of $89 million in principal amount of 10-percent senior secured convertible notes due 2009 held by General Motors. As part of the redemption, General Motors converted $7.8 million in principal amount of the GM notes, representing the entire principal amount of the GM notes that had vested conversion rights at the time of the redemption, into 980,670 shares of XM class A common stock, in accordance with the terms of the GM Notes. The remaining $81.2 million in principal amount plus accrued interest was repaid with cash.

http://www.skyreport.com (Used with permission)


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