Sirius Satellite Radio hires UBS Warburg, discussing debt exchange

New York, Aug. 13 - Sirius Satellite Radio Inc. said it has hired UBS Warburg to advise on raising additional capital and reducing debt.

Discussions have already started with "key" debt holders on exchanging all or a significant portion of the company's borrowings for equity and talks are also under way with affiliates of Apollo Management, LP and The Blackstone Group LP on a "substantial" investment in stock, the New York, N.Y. satellite radio company said.

Sirius said in a filing with the Securities and Exchange Commission that if any of the proposed transactions are completed they will "dramatically" dilute the ownership interest of current stockholders.

According to the SEC filing, Sirius has enough cash and cash equivalents to cover its funding needs into the second quarter of 2003. Through the end of 2003 it will need $300 million and a further $300 million to take it to the point where operations become self-sustaining.

Sirius added that if it cannot raise additional funds it will be forced to make a bankruptcy filing, reduce its operations, significantly alter its business plan or sell the company.

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