XM Satellite Radio Raises $154.0 Million

By | April 15, 2002 at 12:00 AM

XM Satellite Radio Holdings Inc. announced today that it has priced a public offering of 13,387,000 shares of its Class A Common Stock at a per share price of $11.50.

The offering, expected to close next week, raises gross proceeds of $154.0 million. The proceeds will be used primarily for marketing expenses, systems, and other general corporate purposes, and are expected to fund company operations into the latter half of the first quarter of 2003. All of the securities were offered by the company.

The company also granted the underwriters an option to purchase up to an additional 2,008,050 shares of Class A common stock to cover over-allotments.

The offering was managed by Morgan Stanley, Merrill Lynch & Co., Credit Suisse First Boston, and Deutsche Bank Securities. A copy of the prospectus relating to the offering can be obtained from the company.

XM is transforming radio, an industry that has seen little technological change since FM, almost 40 years ago. XM’s programming lineup features 100 coast-to-coast digital channels: 71 music channels, more than 30 of them commercial-free, from hip hop to opera, classical to country, bluegrass to blues; and 29 channels of sports, talk, children’s and entertainment. XM also brings to the car, for the first time on radio, the same diverse selection of 24-hour news sources available in the home on cable and DIRECTV.

XM was named 2001 “Product of the Year” by Fortune, an “Invention of the Year” by Time and won Popular Science’s 2001 “Best of What’s New” Grand Award in the electronics category. XM won several awards at the 2001 CES, including “Best of CES” in the automotive category.

General Motors in November rolled out factory-installed Delphi-Delco XM radios in Cadillac DeVille and Seville models, and will expand to a total of 25 Buick, Cadillac, Chevrolet, GMC, Olds and Pontiac models this year. Nissan announced it will offer XM as an option this coming fall on select Infiniti and Nissan 2003 models. XM has signed a distribution agreement to offer satellite radio to Volkswagen and Audi customers in the United States in the coming years.

Isuzu dealers will begin to offer XM radios to customers in April. XM radios are available at major electronics retailers nationwide including Best Buy, Circuit City, Tweeter, Ultimate Electronics, participating RadioShack Dealers and Franchisees, Crutchfield, Good Guys, CarToys, Audio Express and Sound Advice; and at independent retailers. Leading manufacturers such as Sony, Alpine and Pioneer offer a broad array of XM radios that easily enable any existing car stereo system. XM’s strategic investors include America’s leading car, radio and satellite TV companies – General Motors, American Honda Motor Co. Inc., Clear Channel Communications and DIRECTV. For more information, please visit XM’s web site: http://www.xmradio.com.

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