SIRIUS Extends Option to Purchase $50 Million of 2 ½ % Convertible Notes
SIRIUS Extends Option to Purchase $50 Million of 2 ½% Convertible NotesNEW YORK -- March 12, 2004 - SIRIUS Satellite Radio (NASDAQ: SIRI) today announced that it has extended the exercise date of the option it granted to Morgan Stanley & Co. Incorporated to purchase up to $50 million in principal amount of its 2½% Convertible Notes due 2009. The option, which was granted to Morgan Stanley & Co. Incorporated, as the initial purchaser, in connection with the company’s offering of $250 million of 2½% Convertible Notes due 2009 last month, will now expire on April 13, 2004 to the extent it is not exercised.
Each $1,000 in principal amount of the notes will be convertible, at the option of the holder, into 226.7574 shares of SIRIUS’ common stock, an effective price of $4.41 per share. SIRIUS plans to use the net proceeds for general corporate purposes.
The notes were offered only to qualified institutional buyers in reliance upon Rule 144A of the Securities Act of 1933. The notes, and the common stock issuable upon conversion of the notes, have not been registered under the Securities Act, or any state securities laws, and may not be offered or sold in the United States absent registration under, or an applicable exemption from, the registration requirements of the Securities Act and applicable state securities laws.
SIRIUS is the only satellite radio service bringing listeners more than 100 streams of the best music and entertainment coast-to-coast. SIRIUS offers 61 music streams with no commercials, along with over 40 world-class sports, news and entertainment streams for a monthly subscription fee of only $12.95, with greater savings for upfront payments of multiple months or a year or more. SIRIUS is also the official satellite radio partner of the NFL. Stream Jockeys create and deliver uncompromised music in virtually every genre to our listeners 24 hours a day. Satellite radio products bringing SIRIUS to listeners in the car, truck, home, RV and boat are manufactured by Kenwood, Panasonic, Clarion and Audiovox, and are available at major retailers including Circuit City, Best Buy, Car Toys, Good Guys, Tweeter, Ultimate Electronics, Sears, Crutchfield and, beginning this summer, RadioShack. SIRIUS is the leading OEM satellite radio provider, with exclusive partnerships with DaimlerChrysler, Ford and BMW. Automotive brands currently offering SIRIUS radios in select new car models include BMW, MINI, Chrysler, Dodge, Jeep®, Mercedes-Benz, Nissan, Infiniti, Mazda, Audi, Ford and Lincoln-Mercury. Automotive brands that have announced plans to offer SIRIUS in select models include Jaguar, Volvo, Volkswagen, Land Rover and Aston Martin. Genmar Holdings, the world’s largest manufacturer of recreational boats, Formula Boats and Winnebago, the leading supplier of recreational vehicles and motor homes, also offer SIRIUS. Hertz currently offers SIRIUS in 29 vehicle models at 53 major locations around the country.
Click on www.sirius.com to listen to SIRIUS live, or to find a SIRIUS retailer or car dealer in your area.
Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, future events or performance with respect to SIRIUS Satellite Radio Inc. are not historical facts and may be forward-looking and, accordingly, such statements involve estimates, assumptions and uncertainties which could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, any such statements are qualified in their entirety by reference to the factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2002 filed with the Securities and Exchange Commission. Among the key factors that have a direct bearing on our results of operations are: our dependence upon third parties to manufacture, distribute, market and sell SIRIUS radios and components for those radios; the unproven market for our service; our competitive position and any events which affect the useful life of our satellites.