XM Radio 2012 Annual Report Download - page 114

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SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Retired Debt
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”). 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 guaranteed
our obligations under the 9.75% Notes. The 9.75% Notes and related guarantees were secured by first-priority
liens on substantially all of our assets and the assets of the guarantors.
During the year ended December 31, 2012, we purchased $257,000 in aggregate principal amount of the
9.75% Notes for an aggregate purchase price, including interest, of $281,698. We recognized an aggregate loss
on the extinguishment of the 9.75% Notes of $22,184 during the year ended December 31, 2012, consisting
primarily of unamortized discount, deferred financing fees and repayment premium, to Loss on extinguishment
of debt and credit facilities, net.
13% Senior Notes due 2013
In July 2008, we issued $778,500 aggregate principal amount of 13% Senior Notes due 2013 (the “13%
Notes”). The 13% Notes would have matured on August 1, 2013. Substantially all of our domestic wholly-owned
subsidiaries guaranteed our obligations under the 13% Notes.
During the year ended December 31, 2012, we purchased $778,500, in aggregate principal amount of the
13% Notes for an aggregate purchase price, including interest, of $879,133. We recognized an aggregate loss on
the extinguishment of the 13% Notes of $110,542 during the year ended December 31, 2012, consisting primarily
of unamortized discount, deferred financing fees and repayment premium, to Loss on extinguishment of debt and
credit facilities, net.
3.25% Convertible Notes due 2011
In 2011, we purchased $168,113 of our then outstanding 3.25% Convertible Notes due 2011 (the “3.25%
Notes”) at prices between 100.75% and 101% of the principal amount plus accrued interest. We recognized a loss
on extinguishment of debt for the 3.25% Notes of $2,291 for the year ended December 31, 2011, which consisted
primarily of cash premiums paid, unamortized discount and deferred financing fees. The remainder of the 3.25%
Notes was paid upon maturity in the fourth quarter of 2011.
11.25% Senior Secured Notes due 2013
In October 2010, we purchased $489,065 in aggregate principal amount of our 11.25% Senior Secured
Notes due 2013 (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 comprehensive income. 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.
Covenants and Restrictions
Our debt generally requires compliance with certain covenants that restrict our ability to, among other
things, (i) incur additional indebtedness unless our consolidated leverage would be no greater than 5.0 times
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