CD Radio Files Offerings
WASHINGTON (Sept. 2) BUSINESS WIRE -Sept. 2, 1997--CD Radio Inc.
(Nasdaq:CDRD) today filed registration statements with the Securities
and Exchange Commission for the issuance of 3,500,000 shares of Common
Stock and for the issuance of $150 million gross proceeds of Senior
Discount Notes due 2007.
In addition, the Company filed a registration statement for the
issuance of Convertible Preferred Stock in exchange for the outstanding
shares of its 5% Delayed Convertible Preferred Stock.
Managing underwriters for the sale of the Common Stock are Merrill
Lynch, Lehman Brothers and Unterberg Harris. Managing underwriters for
the sale of the Senior Discount Notes are Merrill Lynch and Lehman
Brothers. Merrill Lynch is the dealer manager for the Exchange Offer.
Registration statements relating to these securities have been filed
with the Securities and Exchange Commission but have yet to become
effective. These securities may not be sold nor may offers to buy or
exchange be accepted prior to the time the applicable registration
statement becomes effective. This press release shall not constitute
an offer to sell or exchange or the solicitation of an offer to sell or
exchange, nor shall there be any sale or exchange, of these securities
in any state in which such offer, solicitation, sale or exchange would
be unlawful prior to registration or qualification under the securities
laws of any such state.
CD Radio is the winning bidder for one of two FCC national satellite
radio broadcast licenses. The Company is building a satellite-to-car
50 channel radio system for the broadcast of music and other
programming to motorists throughout the United States.
--30--CF/ph
CONTACT: CD Radio
David Margolese, 202-296-6192 or
www.cdradio.com
KEYWORD: DISTRICT OF COLUMBIA
INDUSTRY KEYWORD: TELECOMMUNICATIONS ENTERTAINMENT
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Ok , so it looks like they will raise 150 million dolllars through some other kind of debt offering and put off the prefered shareholders with yet another convertable preferred and somewhere in the equation another 3.5 million shares are being added to the float...still alot of money to be raised...dilution is coming slower than I expected but its still coming......any thoughts? |
