Sirius, XM Drop on Debt Plans (Update)

Sirius Satellite Radio (SIRI Quote) and merger mate XM Satellite Radio (XMSR Quote) saw shares tumble Monday after both outlined plans to raise more capital.

The news came as Sirius announced preliminary results for its second quarter early Monday, saying it anticipates a 25% jump in both revenue and subscriber numbers from a year ago.

Sirius said it will sell about $375 million in common stock in a fixed-price public offering, with up to another $65 million more to come later concurrently with a private offering by XM. The exact number of shares Sirius will offer depends on the terms of the XM offering. XM said it plans to offer $550 million of senior notes, due in 2014, which will be exchangeable into shares of Sirius common stock. ...