Sirius XM Chief Says Merger Debt Is 'Ugly'

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Sirius XM Radio struck an "ugly" debt deal to close the merger of the only two U.S. satellite radio operators, chief executive Mel Karmazin said. A bond sale the evening of July 28 allowed Karmazin, previously the chief executive of Sirius, to complete the $2.76 billion all-stock purchase of Washington-based XM Satellite Radio Holdings. Together, XM and Sirius have more than 18 million subscribers and constitute the second-biggest U.S. radio operator by sales, after broadcaster Clear Channel Communications. Karmazin, concerned that traditional radio operators might persuade a judge to block the merger he had pursued for more than a year, sought to conclude the deal within hours of getting regulatory approval. To do so, he needed to accept unfavorable terms on refinancing.


Sirius XM Chief Says Merger Debt Is 'Ugly'