Sirius Gets Breathing Room

Sirius Satellite Radio’s long-term hopes have been boosted by the news of a new $1.2 billion recapitalisation programme. Sirius reached an agreement with holders of more than $1 billion of its debt and preferred stock to convert substantially all of its approximately $700 million of debt and all of its $525 million of preferred stock into common stock, and raise $200 million from the sale of newly-issued common stock.

The additional $200 million, combined with the approximately $240 million cash on hand, is expected to give Sirius sufficient cash to operate into the second quarter of 2004, based upon its business plan.