CANADIAN SATELLITE RADIO HOLDINGS INC. ANNOUNCES PRICING OF INITIAL PUBLIC OFFERING IPO values company at $800 million CNW Canadian Satellite Radio Holdings Inc. (CSR) announced today that it has entered into an underwriting agreement and filed a final prospectus with securities regulatory authorities in each of the Canadian provinces in connection with an initial public offering of 3,437,500 subordinate voting shares at a price of $16 per share.
In addition, CSR has granted the underwriters an option to purchase up to an additional 343,750 subordinate voting shares at the same price to cover over allotments, if any, and for market stabilization purposes. Closing for the offering, which values the company at approximately $800 million, is scheduled to take place on December 12, 2005.
CSR has received conditional approval for the listing of its subordinate voting shares on the Toronto Stock Exchange under the symbol XSR.SV, subject to CSR fulfilling all exchange requirements. CSR intends to use the proceeds of its initial public offering to, among other things, complete its initial infrastructure rollout and to fund operating expenses for the launch of its XM Canada(TM) satellite radio service.
"We are excited by the enthusiastic support that Canadian and international investors have shown for our company," said John I. Bitove, CSR's Chairman and Chief Executive Officer. "We believe we offer the best product, programming and price point for satellite radio in Canada, providing us with a strong base from which to grow our business."
Through its XM Canada service, CSR offers listeners more than 80 channels for a monthly subscription cost of $12.99, including the most commercial-free music channels as well as an NHL hockey channel and news, talk, sports and children's programming across Canada. CSR launched its French and English satellite radio channels for all of North America to hear on November 22. With the 2007-2008 season, XM will become the exclusive provider of NHL hockey on satellite radio.
RBC Capital Markets and Genuity Capital Markets are the co-lead managers for the offering with an underwriting syndicate that includes BMO Nesbitt Burns Inc., CIBC World Markets Inc., GMP Securities Ltd., National Bank Financial Inc. and TD Securities Inc.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirement of such Act. The securities offered are being offered only by means of prospectus. Accordingly, this press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under the securities laws of any such jurisdiction.
About Canadian Satellite Radio Holdings Inc. Canadian Satellite Radio Holdings Inc. operates as XM Canada(TM) through its subsidiary, Canadian Satellite Radio Inc. CSR creates unique Canadian content to be broadcast in Canada and the United States and has an exclusive Canadian licence from U.S.-based XM Satellite Radio Inc. (XM), the leading satellite radio provider in the U.S. with more than five million subscribers. In 2007, XM becomes the exclusive satellite radio broadcaster of the NHL, offering more than 1,000 games a year and a dedicated hockey talk channel called Home Ice.
Forward-looking statements Any forward-looking statements in this document are based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from projections suggested in any forward-looking statements due to a number of risks including those associated with the business of CSR, the proposed offering, regulatory matters, and CSR's relationship with XM. CSR assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements.
The financial information contained in this news release is unaudited, unless otherwise noted. Additional information identifying risks and uncertainties are contained in CSR's filings with the Canadian securities regulators, available at www.sedar.com.
For more information about CSR, visit www.cdnsatrad.com. For more information about XM Canada's satellite radio service, visit www.xmradio.ca. |