Sirius Announces $158 Million Financing
NEW YORK, Jan. 3 /PRNewswire/ — Sirius Satellite Radio (Nasdaq: SIRI) (http://finance.yahoo.com/q?s=siri&d=t) – news (http://biz.yahoo.com/n/s/siri.html), the satellite radio broadcaster, today announced it priced a public offering of common stock resulting in gross proceeds of approximately $158 million. The transaction is being underwritten by Lehman Brothers. Sirius will sell 16 million shares of its common stock at a public offering price of $9.85 per share, and has granted the underwriter an over-allotment option to purchase an additional 2.4 million shares of common stock. (Logo: http://www.newscom.com/cgi-bin/prnh/19991118/NYTH125)
According to Joseph Clayton, president and chief executive officer of Sirius, “This is an important transaction for Sirius. It funds our efforts well into the second quarter of 2003. We are very excited about our business, our prospects and our ability to bring the quality and entertainment of satellite radio to consumers this year. We look forward to unveiling our marketing programs and launch strategy at the Consumer Electronics Show in Las Vegas next week.”
The offering is expected to close on January 8, 2002 and is subject to customary closing conditions. Net proceeds of the offering will be used to fund operating expenses and for general corporate purposes.
A shelf registration statement relating to the shares was previously declared effective by the Securities and Exchange Commission. The shares may be offered only by means of a prospectus supplement and related prospectus. A copy of the prospectus supplement and related prospectus relating to the common stock offering may be obtained from Lehman Brothers.
From its three satellites orbiting directly over the U.S., Sirius will broadcast 100 channels of digital quality radio to motorists throughout the continental United States for a monthly subscription fee of $12.95. Sirius will deliver 60 original channels of completely commercial-free music in virtually every genre, and 40 world-class sports, news and entertainment channels. Sirius has exclusive alliances to install AM/FM/SAT radios in Ford, Chrysler, BMW, Mercedes, Jaguar, Volvo, Mazda, Dodge and Jeep® vehicles. Kenwood, Panasonic, Clarion and Jensen satellite receivers, including models that can adapt any car stereo to receive Sirius, as well as home and portable products, will be available at retailers such as Circuit City, Best Buy, Good Guys, Tweeter and Crutchfield.
Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, future events or performance with respect to Sirius Satellite Radio Inc. are not historical facts and may be forward-looking and, accordingly, such statements involve estimates, assumptions and uncertainties which could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, any such statements are qualified in their entirety by reference to the factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2000. Among the key factors that have a direct bearing on our results of operations are our dependence upon third parties to manufacture and distribute radios capable of receiving our service; the risk of delay in implementing our business plan; the unproven market for our service; and our need for additional financing.
SOURCE: Sirius Satellite Radio Inc.