XM Radio 2012 Annual Report Download - page 107

SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Liberty Media
In February 2009, we entered into an Investment Agreement (the “Investment Agreement”) with an affiliate
of Liberty Media Corporation, Liberty Radio, LLC (collectively, “Liberty Media”). Pursuant to the Investment
Agreement, in March 2009 we issued to Liberty Radio, LLC 12,500,000 shares of our Convertible Perpetual
Preferred Stock, Series B-1 (the “Series B Preferred Stock”), with a liquidation preference of $0.001 per share in
partial consideration for certain loans. Liberty Media has representatives on our board of directors. In September
2012, Liberty Media converted 6,249,900 shares of the Series B Preferred Stock into 1,293,467,684 shares of our
common stock. For a discussion of subsequent events refer to Note 18.
Liberty Media has advised us that as of December 31, 2012 and 2011, respectively, it also owned the
following:
December 31,
2012
December 31,
2011
8.75% Senior Notes due 2015 .................................. $150,000 $150,000
9.75% Senior Secured Notes due 2015 ........................... — 50,000
13% Senior Notes due 2013 .................................... — 76,000
7% Exchangeable Senior Subordinated Notes due 2014 .............. 11,000 11,000
7.625% Senior Notes due 2018 ................................. 50,000 50,000
Total principal debt .......................................... 211,000 337,000
Less: discounts ............................................ 2,094 8,212
Total carrying value of debt .................................... $208,906 $328,788
During the year ended December 31, 2012, we redeemed $50,000 of our 9.75% Senior Secured Notes due
2015 and $76,000 of our 13% Senior Notes due 2013 held by Liberty Media as part of the redemption of these
Notes in their entirety.
As of December 31, 2012 and 2011, we recorded $3,980 and $9,722, respectively, related to accrued interest with
Liberty Media to Related party current liabilities. We recognized Interest expense associated with debt held by Liberty
Media of $30,931, $35,681 and $40,169 for the years ended December 31, 2012, 2011 and 2010, respectively.
Sirius XM Canada
In June 2011, Canadian Satellite Radio Holdings Inc. (“CSR”), the parent company of XM Canada, and
Sirius Canada completed a transaction to combine their operations (“the Canada Merger”). The combined
company operates as Sirius XM Canada. We own approximately 46,700,000 Class A shares on a converted basis
of CSR, representing a 37.9% equity interest and a 25.0% voting interest.
We had the following related party current asset balances attributable to Sirius XM Canada at December 31,
2012 and 2011:
For the Years Ended December 31,
2012 2011
Deferred programming costs and accrued interest ............... $ 4,350 $ 2,500
Dividends receivable ...................................... 6,176 —
Chip set and other services reimbursement ..................... 2,641 7,404
Non-interest bearing note, principal .......................... — 4,798
Total ................................................ $13,167 $14,702
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