The balance sheet at Sirius XM continues to improve, with the company announcing that it will buy back nearly $114 million of debt. The company’s financial picture is much improved from just over a year ago, when it was on the verge of a bankruptcy filing.
Sirius XM announced that on June 1, 2010, XM Satellite Radio Inc. will redeem all of its outstanding 10% Senior PIK Secured Notes due 2011 at a redemption price of 100% plus accrued interest. As of the redemption date, $113,685,000 of 10% Senior PIK Secured Notes due 2011 will be outstanding. XM issued the related notice of redemption to the trustee on Thursday (4/29), who will notify noteholders of the details of the June 1 redemption.
“Our strong cash position, strong first quarter subscriber growth and the improving outlook for the economy have put us in position to retire these notes a year ahead of schedule. The early retirement of these notes will reduce interest expense and increase our free cash flow,” said CFO David Frear.
Sirius XM will report its Q1 financial results on Tuesday, May 4th.
