/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./
TORONTO, Sept. 12 /CNW/ - 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
"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
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(TM) 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(TM) games, PGA TOUR(TM) and Major League Baseball(TM) 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(TM) and Rogers
Wireless and is the 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
For further information:
For further information: Investors, (416) 408-6899,
firstname.lastname@example.org; Media, (416) 203-6666, email@example.com