Sirius, a satellite radio broadcaster, says its stockholders have overwhelmingly approved the company's proposed recapitalization.
At a special meeting of stockholders held Tuesday in New York City, about 68% of Sirius stockholders voted to approve transactions to exchange approximately $700 million in debt for common stock and $519 million in preferred stock for common stock and warrants, plus provide $200 million in additional cash through the sale of newly-issued common stock.
In addition, about 68% of the stockholders voted to approve an amendment and restatement of the company's certificate of incorporation to increase the authorized shares of common stock from 500 million to 2.5 billion. According to Sirius, approximately 63% of Sirius stockholders also voted to approve the company's 2003 Long-Term Stock Incentive Plan, and about 90% of those who voted agreed to accept the prepackaged plan of reorganization as a fall back position.
The proposed restructuring was subject to the successful completion of the company's debt exchange offer, which was scheduled to expire Tuesday evening.
The new cash infusion will be provided by affiliates of Oppenheimer Funds, Inc. ($150 million), Apollo Management, LP ($25 million) and The Blackstone Group LP ($25 million). Upon completion of the transaction, affiliates of Apollo and Blackstone will exchange all of their existing convertible preferred stock for newly issued shares of common stock and warrants to purchase common stock.
At a special meeting of stockholders held Tuesday in New York City, about 68% of Sirius stockholders voted to approve transactions to exchange approximately $700 million in debt for common stock and $519 million in preferred stock for common stock and warrants, plus provide $200 million in additional cash through the sale of newly-issued common stock.
In addition, about 68% of the stockholders voted to approve an amendment and restatement of the company's certificate of incorporation to increase the authorized shares of common stock from 500 million to 2.5 billion. According to Sirius, approximately 63% of Sirius stockholders also voted to approve the company's 2003 Long-Term Stock Incentive Plan, and about 90% of those who voted agreed to accept the prepackaged plan of reorganization as a fall back position.
The proposed restructuring was subject to the successful completion of the company's debt exchange offer, which was scheduled to expire Tuesday evening.
The new cash infusion will be provided by affiliates of Oppenheimer Funds, Inc. ($150 million), Apollo Management, LP ($25 million) and The Blackstone Group LP ($25 million). Upon completion of the transaction, affiliates of Apollo and Blackstone will exchange all of their existing convertible preferred stock for newly issued shares of common stock and warrants to purchase common stock.
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