By Paul A. Harris
St. Louis, Feb. 8 - Canadian Satellite Radio Holdings Inc. priced a $100 million issue of eight-year senior notes at par to yield 12¾%, according to a market source.
Bear Stearns & Co. ran the books for the Rule 144A transaction. RBC Capital Markets was the co-manager.
Proceeds will be used to pay for operating expenses, including subscriber acquisition costs, marketing and advertising expenses, broadcast operations, programming costs, payments under the company's license agreement with XM Satellite Radio and for general corporate purposes.
According to the source, covenant changes include a restricted payments basket of $5 million, reduced from $10 million, and a debt incurrence ratio of 5.5 times, reduced from 6 times.
Toronto-based Canadian Satellite Radio Holdings operates as XM Canada through its subsidiary, Canadian Satellite Radio Inc. CSR creates Canadian content to be broadcast in Canada and the United States and has an exclusive Canadian license from U.S.-based XM Satellite Radio Inc.
| Issuer: | Canadian Satellite Radio Holdings Inc.
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| Amount: | $100 million
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| Maturity: | Feb. 15, 2014
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| Bookrunner: | Bear Stearns & Co.
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| Co-manager: | RBC Capital Markets
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| Coupon: | 12¾%
|
| Price: | Par
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| Yield: | 12¾%
|
| Spread: | 816 basis points
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| Call features: | Callable after Feb. 15, 2010 at 106.375, 103.188, par on and after Feb. 15, 2012
|
| Equity clawback: | Until Feb. 15, 2009 for 35% at 112.75
|
| Settlement date: | Feb. 10
|
| Ratings: | Non-rated
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| Distribution: | Rule 144A
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