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SiriusXM Completes $480M Investment in Pandora
RADIO ONLINE | Monday, September 25, 2017 | 1:46am CT

SiriusXM has purchased $307.5 million of Series A preferred stock in Pandora, completing the $480 million investment it announced on June 9. Under the terms of the deal, a unit of SiriusXM purchased $172.5 million of Series A preferred stock on June 9, 2017 and on Friday purchased an additional $307.5 million of the Series A preferred stock. The stock is convertible into common stock at a purchase price of $10.50 per share and represents a stake of 19% of Pandora's currently outstanding common stock, and a 16% interest on an as-converted basis.

Following closing of the second investment, Gregory B. Maffei, the Chairman of SiriusXM, James E. Meyer, the Chief Executive Officer of SiriusXM,and David J. Frear, the Senior Executive Vice President and Chief Financial Officer of SiriusXM, were named to the Pandora board of directors. Maffei was also named Chairman of Pandora. With these additions, Elizabeth Nelson --- who has served on Pandora's board since 2013 -- concluded her tenure on Pandora's board, effective immediately. The Pandora board now consists of nine directors.

SiriusXM may require Pandora to redeem the Series A preferred stock beginning on September 22, 2022, the fifth anniversary of the closing, for an amount equal to its liquidation preference plus all accrued and unpaid dividends. Pandora may also redeem the Series A preferred stock at any time after September 22, 2020, the third anniversary of the closing, if the daily volume weighted average price of Pandora's common stock is greater than or equal to 175% of the then applicable conversion price for a period of at least 20 days during a 30-day trading window prior to the notice of redemption.

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