|
SIRIUS Completes $250 Million Term Loan |
|
|
|
SIRIUS Satellite Radio
(Nasdaq: SIRI) today announced that it completed the $250 million senior
secured term loan from Morgan Stanley Senior Funding, Inc. The issue was
very well received in the marketplace with strong demand and attractive
pricing.
The loan will mature in five and one-half years and has financial
covenants substantially similar to those under the Company's existing 9
5/8% Senior Notes.
The interest rate on the loan is established at LIBOR
(rounded to the nearest 1/16th) plus 225 basis points, which is 7.625%
today. The proceeds will be used for general corporate purposes. Morgan
Stanley acted as the sole lead arranger.
About SIRIUS
On February 19, 2007 SIRIUS and XM Satellite Radio entered into a
merger agreement to combine the companies' businesses. Boards of both
companies have approved the merger. The completion of the merger is subject
to various closing conditions, including obtaining the approval of
stockholders and XM's stockholders and receiving certain regulatory and
anti-trust approvals, including from the Federal Communications Commission
(FCC) and the Department of Justice (DOJ) under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976.
|
