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| 9/12/2007 6:40:31 PM ET | News Release Index
| | Canadian Satellite Radio Holdings Inc.
completes C$20 million convertible debt offering | | | NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.
For immediate release September 12, 2007
Canadian Satellite Radio Holdings Inc.
completes C$20 million convertible debt offering
TORONTO – Canadian Satellite Radio Holdings Inc. ("CSR") (TSX:XSR), operator of XM Canada, today announced it has closed a private placement of C$20 million aggregate principal amount of convertible unsecured subordinated debentures due September 12, 2014 (the "Debentures").
"We are very pleased to announce this financing, especially during these challenging credit market conditions," said John Bitove, chairman and chief executive officer of CSR. “Our growth exceeded expectations this quarter and as we continue to focus on new development initiatives, we will use the proceeds to search for innovative opportunities to aggressively grow the business and further increase our subscriber base.”
The Debentures will bear interest at a rate of 8.0 per cent per annum payable semi-annually in arrears on December 31 and June 30, with the initial interest payment due on December 31, 2007. Each debentureholder shall have the option to receive such interest either in the form of cash or Class A Subordinated Voting Shares of CSR (“the Shares”). At any time prior to September 12, 2014, the Debentures will be convertible at a conversion price of $5.92 at the holders' option into Shares of CSR which is equal to a conversion ratio of 168.919 Shares per $1,000 principal amount of Debentures, subject to adjustment in certain circumstances.
A group of investors including XM Satellite Radio Holdings Inc., CSR’s chairman and chief executive officer, John Bitove, and related associates thereof, directly or indirectly acquired, in the aggregate, C$10 million of the Debentures.
“This is a prudent move that provides an additional source of funding to achieve even greater growth targets,” said Bitove. “I continue to be extremely confident in our business plan.”
The private placement of the Debentures was completed through a syndicate of agents led by GMP Securities L.P. and including Genuity Capital Markets.
The independent directors of CSR reviewed and approved the terms of the offering unanimously. Further details of matters with respect to the Debentures are set out in the trust indenture and agency agreement for the offering, which will be available under the Company’s profile at www.sedar.com.
This news release does not constitute an offer to sell or a solicitation of an offer to buy securities in the United States. These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Canadian Satellite Radio Holdings Inc.
Canadian Satellite Radio Holdings Inc. (TSX: XSR) operates as XM Canada™ through its subsidiary, Canadian Satellite Radio Inc. XM is Canada’s premium digital audio entertainment and information company with the best satellite coverage in the country and offering a unique lineup of premier Canadian and international content.
With 120 channels, XM Canada offers listeners the most channels of unique and exclusive programming including exclusive satellite radio coverage of NHL™ games, PGA TOUR™ and Major League Baseball™ coverage, the deepest play list, and news, talk, sports, entertainment and children's programming. Acura, Buick, Cadillac, Chevrolet, General Motors, GMC, Harley Davidson, Honda, Hummer, Hyundai, Infiniti, Lexus, Nissan, Pontiac, Toyota, Saab, Saturn, Suzuki and Subaru now offer XM radios in more than 115 different models of vehicles for model year 2007.
XM has an exclusive Canadian license from U.S.-based XM Satellite Radio Inc., the leading satellite radio provider in the U.S. with more than 8 million subscribers. XM is offered on TELUS Mobile Radio™ and Rogers Wireless and is exclusive music channel provider on Air Canada’s flights. A live stream of selected XM Canada channels is available via a three-day complimentary trial of XM Radio Online at http://listen.xmradio.ca. To subscribe to XM Canada online or for more information about XM Canada's programming lineup and radio choice, visit www.xmradio.ca
To find out more about Canadian Satellite Radio Inc. (TSX: XSR), visit www.cdnsatrad.com.
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For further information, please contact:
Investors
416-408-6899
investor.relations@xmradio.ca
Media
416-203-6666
xmradio@wilcoxgroup.com
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