XM Satellite Radio

(XMSR)

slid 3% Thursday morning after the satellite-radio broadcaster set plans to sell $300 million in convertible debt.

The Washington, D.C.-based pay radio company said it intends to privately place $300 million of senior convertible notes due 2009. The notes will be convertible into shares of class A common stock.

The company said it will use proceeds for general corporate purposes.

Shares of XM, which rose 10-fold last year and were trading near their 52-week high ahead of the news late Wednesday, slipped 93 cents in early action Thursday to $34.55.