Sirius XM Says Does Not Expect Satellite Radio Service To Be Impacted By Adverse SXM-7 Events

(RTTNews) - Sirius XM Holdings Inc. (SIRI) said that it successfully launched its SXM-7 satellite on December 13, 2020, and in-orbit testing of the satellite began on January 4, 2021.

In a regulatory filing, the company said that during in-orbit testing of SXM-7, some events occurred and caused failures of certain SXM-7 payload units.

The company added that at an evaluation of SXM-7 is underway and the full extent of the damage to SXM-7 is not yet known.

Sirius XM said it does not expect its satellite radio service to be impacted by these adverse SXM-7 events. The company's XM-3 and XM-4 satellites continue to operate and are expected to support its satellite radio service for several years. Further, the company's XM-5 satellite remains available as an in-orbit spare. Construction of the SXM-8 satellite is underway, with the satellite expected to be launched into a geostationary orbit later this year.

Sirius XM said it has purchased insurance policies covering SXM-7 through launch and the first year of in-orbit operation and the aggregate coverage under those insurance policies is $225 million.

The company has notified the underwriters of these policies of a potential claim with respect to SXM-7.