Siriux XM reverses stock split

Move designed to reduce outstanding shares

In their annual meeting at Gotham’s Equitable Center, Sirius XM shareholders approved a reverse stock split and a plan to issue as many as 3.5 billion additional shares.

The vote empowers the board to split common Sirius shares via anything from a 1-for-10 to 1-for-50 ratio by Dec. 31, 2009. The move is designed to reduce the number of outstanding shares from the current total of 3.2 billion to somewhere between 65 million and 320 million.

Shareholders also approved the issuance of as many as 3.5 billion additional authorized shares of common stock for a total of 8 billion.

With the two moves, the embattled satellite radio concern is hoping to stimulate its stock price and raise cash with an eye toward financing the approximately $1 billion debt that matures next year, the first payment toward which comes due in February.

Sirius shares rose to 15¢ on the news of the shareholder vote, after falling to as low as 8¢ earlier this month.

An executive presentation at the meeting projected a $200 million drop in adjusted EBITDA, down from an earlier projection of $300 million.

Speaking to the confab, CEO Mel Karmazin cited another money-saving initiative — the 460 layoffs, totaling 22% of Sirius’ workforce, that will have been enacted by year’s end.

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