Sirius XM Announces $2 Billion Stock Repurchase Program And Special
Cash Dividend
NEW YORK, Dec. 6, 2012 /PRNewswire/ -- Sirius XM Radio Inc.
(NASDAQ: SIRI) today announced that its Board of Directors has
approved a $2 billion common stock
repurchase program. Shares of common stock may be purchased
from time to time on the open market and in privately negotiated
transactions. Liberty Media Corporation, the beneficial owner
of approximately 49.8% of the Company's stock, has indicated that
it will participate in the Company's share repurchases on a pro
rata basis so that its relative ownership interest will not be
affected by the program. The Company will fund the
repurchases through cash on hand, future cash flow from operations
and borrowings under its revolving credit facility.
(Logo: http://photos.prnewswire.com/prnh/20101014/NY82093LOGO
)
The Board of Directors also declared a special cash dividend in
the amount of $0.05 per share of
common stock, payable on December 28,
2012 to stockholders of record as of the close of business
on December 18, 2012. The
Company's preferred stock will participate in the dividend on an
as-converted basis in accordance with its terms. The
total amount of the cash dividend is expected to be approximately
$325 million.
The combined announcement reflects the Board's desire to return
value to stockholders and its confidence in the long-term growth
prospects of the Company's business. SiriusXM retains ample
capital capacity to continue making long-term investments in its
programming, research and development initiatives and overall
operations, as well as pursue strategic opportunities that may
arise.
The timing and amount of any shares repurchased will be
determined based on the Company's evaluation of market conditions
and other factors and the program may be discontinued or suspended
at any time. Repurchases will be made in compliance with all
SEC rules and other legal requirements and may be made in part
under a Rule 10b5-1 plan, which permits stock repurchases when the
Company might otherwise be precluded from doing so.
About Sirius XM Radio
Sirius XM Radio Inc. is the world's largest radio broadcaster
measured by revenue and has 23.4 million subscribers.
SiriusXM creates and broadcasts commercial-free music; premier
sports talk and live events; comedy; news; exclusive talk and
entertainment; and the most comprehensive Latin music, sports and
talk programming in radio. SiriusXM is available in vehicles from
every major car company in the U.S., from retailers nationwide, and
online at siriusxm.com. SiriusXM programming is also available
through the SiriusXM Internet Radio App for Android, Apple, and
BlackBerry smartphones and other connected devices. SiriusXM also
holds a minority interest in SiriusXM Canada which has more than 2
million subscribers.
This communication contains "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such statements include, but are not limited to,
statements about future financial and operating results, our plans,
objectives, expectations and intentions with respect to future
operations, products and services; and other statements identified
by words such as "will likely result," "are expected to," "will
continue," "is anticipated," "estimated," "believe," "intend,"
"plan," "projection," "outlook" or words of similar meaning.
Such forward-looking statements are based upon the current beliefs
and expectations of our management and are inherently subject to
significant business, economic and competitive uncertainties and
contingencies, many of which are difficult to predict and generally
beyond our control. Actual results may differ materially from
the results anticipated in these forward-looking
statements.
The following factors, among others, could cause actual
results to differ materially from the anticipated results or other
expectations expressed in the forward-looking statements: our
competitive position versus other forms of audio entertainment; our
dependence upon automakers; general economic conditions; failure of
our satellites, which, in most cases, are not insured; our ability
to attract and retain subscribers at a profitable level; royalties
we pay for music rights; the unfavorable outcome of pending or
future litigation; failure of third parties to perform; and our
substantial indebtedness. Additional factors that could cause
our results to differ materially from those described in the
forward-looking statements can be found in our Annual Report on
Form 10-K for the year ended December 31,
2011, which is filed with the Securities and Exchange
Commission (the "SEC") and available at the SEC's Internet site
(http://www.sec.gov). The information set forth
herein speaks only as of the date hereof, and we disclaim any
intention or obligation to update any forward looking statements as
a result of developments occurring after the date of this
communication.
Follow SiriusXM on Twitter or like the SiriusXM page on
Facebook.
E - SIRI
SOURCE Sirius XM Radio Inc.