TORONTO – Satellite radio operator XM Canada’s parent company, Canadian Satellite Radio Holdings said today it has raised US$100 million in aggregate principal amount of 12.75% senior notes due 2014.
The notes will bear interest at an annual rate of 12.75% and will be guaranteed by Canadian Satellite Radio Inc., CSR’s wholly owned subsidiary.
The company intends to use the net proceeds from the offering to pay for ongoing operating expenses, including subscriber acquisition costs, marketing and advertising expenses, broadcast operations, programming costs, payments under its license agreement with XM Satellite Radio, and for general corporate purposes.
The notes offering is expected to close on or about February 10, 2006.
"We are very pleased with the investor reaction to this note offering," said Michael Washinushi, the chief financial officer of CSR and XM Canada. "Upon closing of this offering we are fully capitalized to successfully execute our business plan."
