Sirius Satellite Radio filed a form 8K today regarding their new satellite. The filing offers details on Sirius sixth satellite. The filing states the following:
“We have exercised an option under our existing satellite purchase agreement with Space Systems/Loral, Inc. to purchase an additional satellite. Space Systems/Loral will design and construct the satellite, which is expected to be one of the most advanced and powerful satellites ever built.
Construction of this satellite is expected to be completed in 2010. The satellite is expected to be launched into an inclined elliptical orbit to complement our existing satellites, which were also manufactured by Space Systems/Loral. Our unique hybrid constellation, consisting of satellites operating in a highly inclined geosynchronous orbits in combination with one satellite operating in a geostationary orbit, will provide unparalleled redundancy, enhanced coverage and exceptional performance.
The aggregate cost of designing and building this satellite will be approximately $169 million. A substantial portion of this purchase price will not be paid until 2009 and following the launch and successful completion of on-orbit testing of this satellite.
In June 2006, in connection with the contract to purchase our fifth satellite, which is currently under construction, Space Systems/Loral agreed to provide us a $100 million vendor financing facility. No amounts in connection with this existing facility have been drawn. As part of the exercise of the option to purchase an additional satellite, Space Systems/Loral has amended and extended this $100 million vendor financing to permit us to access the facility to pay a portion of the purchase price of the new satellite.”
Interesting items to note are that Sirius seems to have selected an orbital path that matches the existing constellation. As we know, Sirius 5, which is due to be launched next year is slated for a geostationary orbit. Also of note is that the credit facility was revised to include this newer satellite, and the statement that the credit facility has not been tapped.
The Current status of Sirius’ satellites:
Sirius 1 – In Elliptical Orbit – Fully Paid For
Sirius 2 - In Elliptical Orbit – Fully Paid For
Sirius 3 – In Elliptical Orbit – Fully Paid For
Sirius 4 – Ground Spare of Same Generation as Sirius 1,2, and 3 – Fully Paid For
Sirius 5 – Slated for Geo-Stationary Orbit – Under Construction – Partially Paid
Sirius 6 – Slated for Elliptical Orbit – Just Contracted
Position - Long Sirius, Long XM