TORONTO – Canadian Satellite Radio Holdings has announced the pricing for its initial public offering: 3,437,500 subordinate voting shares are being offered at $16 per share.
CSR has entered into an underwriting agreement with RBC Capital Markets and Genuity Capital Markets, which are the co-lead managers for the offering with an underwriting syndicate that includes BMO Nesbitt Burns, CIBC World Markets, GMP Securities, National Bank Financial, and TD Securities.
The company has granted the underwriters an option to purchase up to an additional 343,750 subordinate voting shares at the same price to cover over allotments, if any, and for market stabilization purposes. Closing for the offering, which values the company at approximately $800 million, is scheduled to take place on Dec. 12.
CSR has filed a final prospectus with securities regulatory authorities in each province. It has received conditional approval to list its subordinate voting shares on the Toronto Stock Exchange under the symbol XSR.SV, subject to fulfilling all exchange requirements.
The company intends to use money raised from the IPO to, among other things, complete its initial rollout and fund operating expenses for its recently launched XM Canada satellite radio service.
"We are excited by the enthusiastic support that Canadian and international investors have shown for our company," said John Bitove, CSR’s Chairman and CEO. "We believe we offer the best product, programming, and price point for satellite radio in Canada, providing us with a strong base from which to grow our business."
