XM To Raise $150M In Share Offering
XM Satellite Radio Holdings [Nasdaq: XMSR] plans to issue 11.3 million shares of its Class A common stock for sale to Baltimore-based institutional investors Legg Mason Funds Management, Legg Mason Capital Management and T. Rowe Price Associates. The deal is expected to close Wednesday and raise $150 million in net proceeds. The proceeds could be used by XM to fund construction of its new ground spare satellite, XM-4. Depending on the outcome of insurance settlement discussions involving deteriorating in-orbit satellites, the stock sale proceeds also could be used for working capital and general corporate purposes, including repurchase or pre-payment of outstanding debt, XM officials said.
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