In an SEC filing today, Sirius XM Radio announced that they have agreed to issue an aggregate of 108,100,000 shares of common stock in exchange for $15,640,000 principal amount of the 2% Convertible Notes due 2009 (the "2% Notes") beneficially owned by institutional holders. The move brings down the February debt, which was once at about $300,000,000, to $193,588,000.

The company executed these transactions to reduce debt and interest cost, increase equity, and improve the balance sheet. As before, the company stated that they may engage in additional exchanges in respect of their outstanding indebtedness if and as favorable opportunities arise.

What is interesting is the size of this pay-down. The company is pursuing refinancing, and there are a few differing holders of the debt. This is the fourth such pay-down since the merger was announced.

In addition to the debt issue, the company announced that on December 19, 2008, James Rhyu, their Senior Vice President and Chief Accounting Officer, informed Sirius XM Radio that he expects to leave the company in January 2009. The company understands that Mr. Rhyu expects to be appointed to a senior financial position at another company.

The Audit Committee of the Board of Directors has appointed Adrienne E. Calderone to serve as acting principal accounting officer. Ms. Calderone, 41, has been employed by Sirius XM since August 2006 as Senior Vice President and Controller.

Position - Long Sirius XM