Nashville, Oct. 8 - Sirius Satellite Radio Inc. sold $200 million of seven-year non-callable convertible notes at par to yield 3.25% with a 32.8% initial conversion premium.
The overnight Rule 144A deal priced at the cheaper end of guidance for a yield of 3.25% and an initial conversion premium of 31.6% to 41.6%.
Morgan Stanley & Co. Inc. is sole bookrunner.
Holders will have dividend and takeover protection, but the specifics of those provisions were unknown.
The New York-based premium satellite radio provider also sold 25 million shares of common stock for roughly $100 million.
Sirius said proceeds would be used for general corporate purposes, including investments in programming, infrastructure and retail and automotive distribution arrangements.
Issuer: | Sirius Satellite Radio Inc.
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Issue: | Convertible senior notes
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Bookrunner: | Morgan Stanley & Co. Inc.
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Amount: | $200 million
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Greenshoe: | $30 million
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Maturity: | Oct. 15, 2011
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Dividend: | 3.25%
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Price: | Par
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Yield: | 3.25%
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Conversion premium: | 32.8%
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Conversion price: | $5.312
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Conversion ratio: | 188.253
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Call: | Non-callable
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Put: | No
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Dividend protection: | Yes
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Takeover protection: | Yes
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Price talk: | 3.25%, up 31.6%-41.6%
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Pricing date: | Oct. 7, after the close
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Settlement date: | Oct. 15
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Distribution: | Rule 144A
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