XM Radio 1999 Annual Report Download - page 5

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THE NEXT
FiRST there was AM
THEN there was FM
FiNALLY there iS…
This is our first annual report since becoming a publicly traded company
on October 5, 1999. We feel privileged and pleased to report on the
significant financial, marketing and technology developments that are
positioning XM to be a market leader in satellite radio. In just the few short
months since our public debut, we have:
Laid the foundation for future success by raising almost a billion
dollars in gross proceeds. In total, during the seven months between July
1999 and March 2000 we successfully completed five offerings. After
completing a successful initial round of funding in 1999 with a $250 million
private placement to a group of committed strategic investors, we had a strong
Initial Public Offering in October from which we raised an additional $123 million
from public and strategic investors. In January 2000, we raised a further $240
million in gross proceeds through concurrent offerings of common and
convertible redeemable preferred stock. And most recently, in early March we
successfully placed $325 million of 10-year senior secured notes. Since our
inception, we have raised approximately 80% of the capital necessary to launch
XM’s business. We are also gratified that our stock has been well received in the
public market and has provided outstanding shareholder value since our IPO.
Many of our strategic investors, which include the leading U.S. automobile,
radio and satellite television companies, are also deeply involved as
operational partners, bringing additional value to our business. GM, Clear
Channel, DIRECTV and American Mobile are among the major investors who
are contributing their expertise in strategy, technology, programming and
marketing on a day-to-day basis as we take steps to develop and
commercialize this new mass-market service.
DEAR SHAREHOLDERS
31999 ANNUAL REPORT