radio broadcaster Sirius announced March 5 that a majority of its
stockholders has approved its $1.2 billion recapitalization.
part of the recapitalization project, 91 percent of Sirius’s debt
holders have agreed to exchange their debt for common stock. Additionally,
the company’s preferred stock will be exchanged for common stock,
and the recapitalization will inject $200 million in new capital
from the company’s major financial partners through the sale of
newly issued common stock.
is a major milestone for Sirius that now enables us to move forward
with a strong balance sheet,” Joseph P. Clayton, president and CEO
of Sirius, said. “With our commercial-free music and additional
products coming online this year, including portable Plug &
Play and in-home units, and with our car manufacturer programs taking
shape, we believe that 2003 will be defining year for Sirius, and
a catalyst for long-term success.”
completion of all transactions, expected this week, the recapitalization
will convert about $636 million in debt and $519 million in preferred
stock into common stock.
Rene Tankersley, feature editor