Sirius Satellite Radio Closes on $200 Million Blackstone Investment
2 February 2000
Sirius Satellite Radio Closes on $200 Million Blackstone Investment and $100 Million DaimlerChrysler Investment
NEW YORK, Feb. 2 -- Sirius Satellite Radio ,
the satellite radio broadcaster, today announced that affiliates of The
Blackstone Group completed the purchase of $200 million of preferred stock in
the company. The preferred stock has a 9.2% annual dividend and is
convertible into common stock at a price of $34 per common share. In a
separate transaction that also closed today, DaimlerChrysler has completed the
purchase of $100 million of Sirius common stock as part of an exclusive
arrangement to factory-install Sirius receivers in DaimlerChrysler cars and
light trucks.
(Photo: http://www.newscom.com/cgi-bin/prnh/19991118/NYTH125 )
Sirius has recently announced a number of significant developments,
including an exclusive agreement with DaimlerChrysler to factory-install
Sirius receivers in DaimlerChrysler cars and light trucks sold in the U.S.
The agreement covers Chrysler, Dodge, Dodge Truck, Jeep(R), Mercedes-Benz,
Freightliner trucks and Sterling trucks, and marks the third major automotive
relationship for the company. Sirius already has alliances with BMW, Ford,
Jaguar, Mazda and Volvo to install Sirius-capable receivers.
Sirius Satellite Radio (http://www.siriusradio.com) is building a digital
satellite radio system that will broadcast an unprecedented breadth of unique,
compelling music and entertainment programming to motorists throughout the
continental United States. The company plans to offer 50 channels of
commercial-free music, all created at the company's National Broadcast Studio
in New York City, and up to 50 channels of news, sports and entertainment
programming for a monthly subscription fee of $9.95. Sirius changed its name
from CD Radio in November 1999. The company formerly traded on Nasdaq under
the ticker symbol CDRD; it changed its ticker symbol to SIRI in January 2000.
The company expects to begin broadcasting nationally at the end of the fourth
quarter of 2000.
Any statements that express, or involve discussions as to, expectations,
beliefs, plans, objectives, assumptions, future events or performance with
respect to Sirius Satellite Radio Inc. are not historical facts and may be
forward-looking and, accordingly, such statements involve estimates,
assumptions and uncertainties which could cause actual results to differ
materially from those expressed in the forward-looking statements.
Accordingly, any such statements are qualified in their entirety by reference
to the factors discussed in Sirius Satellite Radio Inc.'s Annual Report on
Form 10-K for the year ended December 31, 1998, filed under the company's
former name, CD Radio Inc. Among the key factors that have a direct bearing
on Sirius Satellite Radio's results of operations are the potential risk of
delay in implementing Sirius Satellite Radio's business plan; increased costs
of construction and launch of necessary satellites; dependence on satellite
construction and launch contractors; dependence on Lucent Technologies; risk
of launch failure; unproven market and unproven applications of existing
technology; unavailability of Sirius Satellite Radio receivers; and Sirius
Satellite Radio's need for additional financing. Additional information
regarding the relationship between DaimlerChrysler and Sirius is available in
Sirius Satellite Radio's Current Report on form 8-K dated February 1, 2000.