Worldspace Satellite Radio Completes Refinancing of $155 Million Convertible Notes
Worldspace Satellite Radio closed the refinancing of its $155 million in convertible notes, redeeming $50 million of the existing notes for cash and issuing new notes and warrants in exchange for the remaining existing convertible notes, the company announced June 1. The senior notes hold a first priority lien on Worldspace’s assets, with the new convertible notes holding a second priority lien.
The refinancing eliminated the right of the noteholders to require Worldspace to redeem the existing convertible notes on Dec. 30, 2007. Worldspace is required to prepay the senior secured notes from any new financing and from certain other available cash.
Worldspace chairman and CEO Noah A. Samara said in a statement that the move would afford the company leeway to “execute our streamlined 2007 plan [to pursue opportunities] particularly in Europe, where we continue to focus on readying the Italian business, and India, and hope to return to the markets with significant business achievements.”