Sirius Satellite Radio has agreed with holders of more than $1 billion of its debt and preferred stock, to convert substantially all of its approximate $700 million of debt and all of its $525 million of preferred stock into common stock.
The company expects to raise $200 million from the sale of the newly issued common stock. The additional $200 million, combined with $240 million in cash on hand, is expected to give Sirius sufficient cash to operate into the second quarter of 2004, based upon its current business plan.
The transaction will “allow us to focus 100 percent of our energies on our business partners and acquiring subscribers,” said Joe Clayton, president/CEO.
The recapitalization is subject to stockholder and regulatory approval.