Reduces debt by US$17M and lowers interest expense
TORONTO, April 14 /CNW/ - Canadian Satellite Radio Holdings Inc., parent
company of XM Canada ("CSR" or the "Company") (TSX: XSR), today announced it
has repurchased approximately US$21.2 million principal amount of its
outstanding high yield debt for US$4.6 million.
"Our underlying goal is to reduce costs and deliver long-term
profitability for our shareholders," said Michael Washinushi, Chief Financial
Officer of XM Canada. "This was an opportune time for us to take this action
in support of that objective. As a result, we have been able to reduce our
long-term debt and debt servicing costs, strengthen our balance sheet and
improve our overall financial picture."
The repurchased debt was part of a US$100.0 million aggregate principal
amount of 12.75 per cent senior notes due in 2014. The repurchase was
completed with approximately US$1.8 million cash and US$2.8 million of
subordinated notes. The subordinated notes mature in 2016 and carry a blended
interest cost of approximately 9.0 per cent.
About Canadian Satellite Radio Holdings Inc.
Canadian Satellite Radio Holdings Inc. (TSX: XSR) operates as XM Canada
and is Canada's premium digital audio entertainment and information company
with the best signal coverage across the country. With 130 digital channels of
choice, XM Canada offers Canadian listeners the most unique and original
Canadian and international programming, including commercial-free music
channels, exclusive live concerts and sports coverage, and the best in talk,
comedy, children's and entertainment programming. A free seven-day trial of XM
Radio Online is available at http://www.xmradio.ca/freetrial/. Visit
www.xmradio.ca for programming and subscription information.
XM Canada is the satellite entertainment leader in the Canadian
automotive market with long-term factory installation agreements with
manufacturers that own close to 60 per cent share of the domestic vehicle
market. XM's industry-leading products are available at shop.xmradio.ca, and
at retailers nationwide.
XM programming is available by subscribing directly through XM Canada and
is also available as streams of commercial-free XM music channels on TELUS
Mobile Radio and Rogers Wireless Radio on Demand. XM Canada is the exclusive
music channel provider on Air Canada's flights and is available in select Avis
Budget Group rental vehicles.
To find out more about Canadian Satellite Radio Holdings Inc. (TSX: XSR),
visit our website at www.xmradio.ca/about/.
Certain statements included above may be forward-looking in nature. Such
statements can be identified by the use of forward-looking terminology such as
"expects," "may," "will," "should," "intend," "plan," or "anticipates" or the
negative thereof or comparable terminology, or by discussions of strategy.
Forward-looking statements include estimates, plans, expectations, opinions,
forecasts, projections, targets, guidance or other statements that are not
statements of fact. Although CSR believes that the expectations reflected in
such forward-looking statements are reasonable, it can give no assurance that
such expectations will prove to have been correct. CSR's forward-looking
statements are expressly qualified in their entirety by this cautionary
statement. CSR makes no commitment to revise or update any forward-looking
statements in order to reflect events or circumstances after the date any such
statement is made, except as required by applicable law. Additional
information identifying risks and uncertainties is contained in CSR's filings
with the Canadian securities regulators, available at www.sedar.com.
For further information:
For further information: Investors: Morlan Reddock, (416) 408-6899,
firstname.lastname@example.org; Media: Lorena Cordoba, (416) 924-5700 Ext.