Sirius XM Radio (SIRI)

BALANCE SHEET IMPROVEMENTS

As previously reported, the company took advantage of strong credit markets during the third quarter by selling $257 million of new 9.75% Senior Secured Notes due 2015 in order to repay $250 million of 15% term loans that would have matured in 2011 and 2012.

“By refinancing at more favorable rates and extending maturities,” noted David Frear, Executive Vice President and Chief Financial Officer, “the company has dramatically improved its near-term liquidity and doesn’t face any material debt maturities until 2011. The two financing transactions completed in the second and third quarters have reset the company’s capital structure, allowing us to execute our business plan without balance sheet constraints.”

The company also reported that, in addition to the previously announced repurchase of $179 million of XM Holdings’ 10% notes due in December 2009, it repurchased nearly $59 million of XM Holdings’ 10% Senior PIK Secured Notes due 2011. “These debt repurchases demonstrate management’s commitment to optimize the company’s capital structure on an opportunistic basis,” added Mr. Frear.

BALANCE SHEET IMPROVEMENTS

During the second quarter the company made improvements to its balance sheet including refinancing some of its debt at lower rates, extending maturities, and improving amortization schedules and covenants.

“These transactions have significantly improved the credit profile of the company, and we intend to be opportunistic in pursuing additional balance sheet improvements,” said David Frear, SIRIUS XM’s EVP and CFO.

Based upon the company’s current plans, it has sufficient cash, cash equivalents, available borrowings under credit facilities and marketable securities to cover the company’s estimated funding needs through cash flow breakeven, the point at which revenues are sufficient to fund expected operating expenses, capital expenditures, working capital requirements, interest payments and taxes. The company’s projections are based on assumptions, which it believes are reasonable but contain uncertainties.