NEW YORK, Feb. 23 (PRNewswire) -- Sirius Satellite Radio, the satellite radio broadcaster, today announced that it priced a public offering of common stock resulting in gross proceeds of $210 million to the company. The transaction is being underwritten by Lehman Brothers.
Sirius will sell 10 million shares of its common stock at a public offering price of $21.00 per share, and has granted the underwriter an over-allotment option to purchase an additional 1.5 million shares of common stock.
The offering is expected to close on March 1 and is subject to customary closing conditions. Net proceeds of the offering will be used to finance operating expenses and for general corporate purposes.
A shelf registration statement relating to the shares was previously declared effective by the Securities and Exchange Commission. The shares may be offered only by means of a prospectus supplement. A copy of the prospectus supplement and related prospectus relating to the common stock offering may be obtained from Lehman Brothers.
In June 2000, Sirius entered into a $150 million credit facility with Lehman Commercial Paper Inc. and Lehman Brothers Inc. The loans under this facility will be made available upon the demonstration of Sirius' broadcast system and satisfaction of other customary conditions, with the proceeds used for general corporate purposes. Upon completion of this offering, and assuming the draw down of the Lehman credit facility, Sirius will have sufficient funds to operate its business through the middle of 2002.
From its three orbiting satellites, Sirius will directly broadcast up to 100 channels of digital-quality radio to motorists throughout the continental United States for a monthly subscription fee of $9.95.
Sirius has alliances to install three-band (AM/FM/SAT) radios in Ford, Chrysler, BMW, Mercedes, Mazda, Jaguar and Volvo vehicles as well as Freightliner and Sterling heavy trucks.
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