XM Satellite Radio Inc., a subsidiary of Sirius XM Radio, announced the closing of its previously announced offering of $700 million aggregate principal amount of 7.625% Senior Notes due 2018. It also reported on its tender to buy back some other notes.
XM announced that it exercised its early purchase option and has accepted for purchase all of the $489,065,000 aggregate principal amount of its outstanding 11.25% Senior Secured Notes due 2013 tendered and not validly withdrawn prior to 5:00 pm ET on October 26, 2010 pursuant to the previously announced tender offer and consent solicitation. Payment for the 11.25% Notes purchased was made October 27th. The tender remains open until November 9th and XM has offered to buy back up to $526 million of the notes.
XM also announced that based on the amount of 11.25% Notes tendered, the company has received the requisite consents to adopt the proposed amendments to the 11.25% Notes, the indenture governing the 11.25% Notes and the related security documents. A supplemental indenture and other documents giving effect to the amendments have been executed and delivered. The amendments have eliminated most of the restrictive covenants and certain of the events of default contained in the indenture governing the 11.25% Notes and have released the security for, and guarantees of, the 11.25% Notes.
