XM Announces Expanded Deal With Honda, Planned Offering Of Secured Notes
Executives at Washington-based XM Satellite Radio today reported that American Honda would expand the number of car models that offer XM radios as standard equipment for the 2005 model year. The move should help to double the number of XM-equipped Honda vehicles sells to 400,000 for the 2005 model year, up from 200,000 for model year 2004.
In related news, XM yesterday disclosed that it intends to sell, subject to market and other conditions, $125 million of senior secured floating rate notes due 2009 to qualified institutional buyers. The notes would be secured by XM Satellite Radio Holdings [XMSR] and the proceeds of the sale would be used to reduce balances outstanding under the company’s $100 million revolving credit facility with General Motors Corp. [GM] and for general corporate purposes, officials said.