Mr. Morlan Reddock reports

SIRIUSXM CANADA CLOSES OFFERING OF C$200 MILLION 5.625% SENIOR UNSECURED NOTES AND ISSUES NOTICE TO REDEEM 9.75% SENIOR NOTES

Sirius XM Canada Holdings Inc. has closed its previously announced private placement of 5.625-per-cent senior unsecured notes due 2021 with an aggregate principal amount of $200-million. The company will use the net proceeds of the offering to finance the redemption of all of the company's $130.8-million outstanding 9.75-per-cent senior notes due 2018 at a redemption price equal to approximately 107.9622 per cent of the principal amount of the existing notes plus accrued and unpaid interest. A notice to redeem the existing notes has been provided to the indenture trustee with the redemption to occur on May 23, 2014. The remaining funds will be used for general corporate purposes, which may include a return of capital to shareholders, acquisition financing or reinvesting in the business or capital expenditures.

The company also announced that it has obtained a commitment, subject to customary closing conditions, for a $35-million senior secured credit facility with National Bank Canada and the Toronto-Dominion Bank. The company expects to close the senior secured credit facility on or after May 23, 2014, following the redemption of the existing notes.

The company has recently received notices from some of its significant shareholders relating to the conversion of some of their Class B voting shares for Class A subordinate voting shares. The company understands that these conversion notices were provided in response to the previously disclosed conversion by Canadian Broadcasting Corp. of all of its Class B voting shares for Class A subordinate voting shares. To update the market, the company highlighted the following approximate voting and equity interest of its significant shareholders based on the conversion notices provided to the company (which is subject to change):

• Sirius XM Radio Inc. (voting: 25.0 per cent; equity: 37.0 per cent);
• Obelysk Media Inc. (voting: 19.4 per cent; equity: 12.5 per cent);
• Slaight Communications Inc. (voting: 19.4 per cent; equity: 12.4 per cent);
• Canadian Broadcasting (voting: 13.3 per cent; equity: 14.0 per cent).

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