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SIRI » Topics » SIRIUS Debt

This excerpt taken from the SIRI 10-K filed Mar 10, 2009.

SIRIUS Debt

STYLE="margin-top:6px;margin-bottom:0px; margin-left:2%">Senior Secured Term Loan

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-height:95%; vertical-align:top">In June 2007, SIRIUS entered into a term credit agreement with a syndicate of financial
institutions. The term credit agreement provides for a Senior Secured Term Loan (the “SIRIUS Term Loan”) of $250,000, which has been fully drawn. Interest under the SIRIUS Term Loan is based, at our option, on (i) adjusted LIBOR plus
2.25% or (ii) the higher of (a) the prime rate and (b) the Federal Funds Effective Rate plus  1/2 of 1.00%, plus
1.25%. As of December 31, 2008, the interest rate was 5.44%. LIBOR borrowings may be made for interest periods, at our option, of one, two, three or six months (or, if agreed by all of the lenders, nine or twelve months). The SIRIUS Term Loan
amortizes in equal quarterly installments of

 


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Table of Contents



SIRIUS XM RADIO INC. AND SUBSIDIARIES

ALIGN="center">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Dollar amounts in
thousands, unless otherwise stated)

 



0.25% of the initial aggregate principal amount for the first four and a half years, with the balance of the loan thereafter being repaid in four equal
quarterly installments. The SIRIUS Term Loan matures on December 20, 2012.

The SIRIUS Term Loan is guaranteed by our wholly owned
subsidiaries, including Satellite CD Radio, Inc. (the “Guarantor”), and is secured by a lien on substantially all of SIRIUS’ and the Guarantor’s assets, including SIRIUS’ three in-orbit satellites and one ground spare
satellite and the shares of the Guarantors.

The SIRIUS Term Loan contains customary
affirmative covenants and event of default provisions. The negative covenants contained in the SIRIUS Term Loan are substantially similar to those contained in the indenture governing the 9 5/
8% Senior Notes due 2013.

FACE="Times New Roman" SIZE="2">9SIZE="1"> 5/8% Senior Notes due 2013

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-height:95%; vertical-align:top">In August 2005, SIRIUS issued $500,000 in aggregate principal amount of 9SIZE="1"> 5/8% Senior Notes due 2013 (the “9 5/8FACE="Times New Roman" SIZE="2">% Notes”) resulting in net proceeds, after debt issuance costs, of $493,005. The 9 5/8%
Notes mature on August 1, 2013 and interest is payable semi-annually on February 1 and August 1 of each year. The obligations under the 9 5/8FACE="Times New Roman" SIZE="2">% Notes are not secured by any of our assets.

FACE="Times New Roman" SIZE="2">3 1/4% Convertible Notes due 2011

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-height:95%; vertical-align:top">In October 2004, SIRIUS issued $230,000 in aggregate principal amount of 3SIZE="1"> 1/4% Convertible Notes due 2011 (the “3 1/SIZE="1">4% Notes”) resulting in net proceeds, after debt issuance costs, of $224,813. The 3 1/4FACE="Times New Roman" SIZE="2">% Notes are convertible, at the option of the holder, into shares of our common stock at any time at a conversion rate of 188.6792 shares of common stock for each $1,000 principal amount, or $5.30 per share of common
stock, subject to certain adjustments. The 3 1/4% Notes mature on October 15, 2011 and interest is payable semi-annually on
April 15 and October 15 of each year. The obligations under the 3 1/4% Notes are not secured by any of our assets.

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