Sirius Plans Sale of Additional Stock

By | June 4, 2003 | Uncategorized

Sirius Satellite Radio [Nasdaq: SIRI] announced Wednesday that it plans to sell an additional 75 million shares of common stock, depending on market conditions. Terms and pricing are to be determined by the company.

Morgan Stanley will be the offering’s “book running manager,” while UBS Warburg will assist with the underwriting, company officials said. The offering would dilute the value of Sirius’ existing shares by 7 percent, according to a research note from Bob Peck, satellite analyst at Bear Stearns.

In a separate transaction, Sirius indicated that The Blackstone Group and its affiliates are considering transferring to limited partners up to 57 million shares of Sirius common stock. Blackstone owns about 6.3 percent of Sirius stock. Affiliates of Blackstone also hold warrants to purchase approximately 42 million shares of Sirius common stock at an average exercise price of 99 cents a share, but Blackstone has not advised Sirius about an intention to sell the warrants.

For a more in-depth discussion of this story, see the June 9 issue of SATELLITE NEWS. For information about subscribing to PBI Media’s satellite newsletters, check out our Web site at http://www.telecomweb.com/catalog.

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