XM Radio 2011 Annual Report Download - page 115

SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(c) 9.75% Senior Secured Notes due 2015
In August 2009, we issued $257,000 aggregate principal amount of 9.75% Senior Secured Notes due
September 1, 2015 (the “9.75% Notes”). Interest is payable semi-annually in arrears on March 1 and September 1
of each year at a rate of 9.75% per annum. The 9.75% Notes were issued for $244,292, resulting in an aggregate
original issuance discount of $12,708. Substantially all of our domestic wholly-owned subsidiaries guarantee our
obligations under the 9.75% Notes. The 9.75% Notes and related guarantees are secured by first-priority liens on
substantially all of our assets and the assets of the guarantors.
(d) 11.25% Senior Secured Notes due 2013
In June 2009, we issued $525,750 aggregate principal amount of 11.25% Senior Secured Notes due 2013
(the “11.25% Notes”). The 11.25% Notes were issued for $488,398, resulting in an aggregate original issuance
discount of $37,352.
In October 2010, we purchased $489,065 in aggregate principal amount of the 11.25% Notes. The aggregate
purchase price for the 11.25% Notes was $567,927. We recorded an aggregate loss on extinguishment of the
11.25% Notes of $85,216, consisting primarily of unamortized discount, deferred financing fees and repayment
premium to Loss on extinguishment of debt and credit facilities, net, in our 2010 consolidated statements of
operations. The remainder of the 11.25% Notes of $36,685 was purchased in January 2011 for an aggregate
purchase price of $40,376. A loss from extinguishment of debt of $4,915 associated with this purchase was
recorded during the year ended December 31, 2011.
(e) 13% Senior Notes due 2013
In July 2008, we issued $778,500 aggregate principal amount of 13% Senior Notes due 2013 (the “13%
Notes”). Interest is payable semi-annually in arrears on February 1 and August 1 of each year at a rate of 13% per
annum. The 13% Notes mature on August 1, 2013. Substantially all of our domestic wholly-owned subsidiaries
guarantee our obligations under the 13% Notes.
(f) 7% Exchangeable Senior Subordinated Notes due 2014
In August 2008, we issued $550,000 aggregate principal amount of 7% Exchangeable Senior Subordinated
Notes due 2014 (the “Exchangeable Notes”). The Exchangeable Notes are senior subordinated obligations and
rank junior in right of payment to our existing and future senior debt and equally in right of payment with our
existing and future senior subordinated debt. Substantially all of our domestic wholly-owned subsidiaries have
guaranteed the Exchangeable Notes on a senior subordinated basis.
Interest is payable semi-annually in arrears on June 1 and December 1 of each year at a rate of 7% per
annum. The Exchangeable Notes mature on December 1, 2014. The Exchangeable Notes are exchangeable at any
time at the option of the holder into shares of our common stock at an initial exchange rate of 533.3333 shares of
common stock per $1,000 principal amount of Exchangeable Notes, which is equivalent to an approximate
exchange price of $1.875 per share of common stock.
(g) 7.625% Senior Notes due 2018
In October 2010, we issued $700,000 aggregate principal amount of 7.625% Senior Notes due 2018 (the
“7.625% Senior Notes”). Interest is payable semi-annually in arrears on May 1 and November 1 of each year at a
rate of 7.625% per annum. A majority of the net proceeds were used to purchase $489,065 aggregate principal
amount of the 11.25% Notes. The 7.625% Senior Notes mature on November 1, 2018. Substantially all of our
domestic wholly-owned subsidiaries guarantee our obligations under the 7.625% Senior Notes.
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