SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM T-1 STATEMENT OF ELIGIBILITY UNDER THE TRUST INDENTURE ACT OF 1939 OF A CORPORATION DESIGNATED TO ACT AS TRUSTEE CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY OF A TRUSTEE PURSUANT TO SECTION 305(B)(2) IBJ SCHRODER BANK & TRUST COMPANY (Exact name of trustee as specified in its charter) New York 13-5375195 (Jurisdiction of incorporation (I.R.S. employer or organization if not a U.S. national bank) identification No.) One State Street, New York, New York 10004 (Address of principal executive offices) (Zip code)
LUIS PEREZ, ASSISTANT VICE PRESIDENT IBJ SCHRODER BANK & TRUST COMPANY One State Street New York, New York 10004 (212) 858-2000 (Name, address and telephone number of agent for service) CD RADIO INC. (Exact names of obligor as specified in its charter) Delaware 52-1700207 (State or other jurisdiction of (I.R.S. employer incorporation or organization) identification No.) 1001 22ND STREET, NW WASHINGTON, D.C.
20037 (Address of principal executive offices) (Zip code) Senior Discount Notes due 2007 (Title of indenture securities) Item 1. General information Furnish the following information as to the trustee: (a) Name and address of each examining or supervising authority to which it is subject. New York State Banking Department Two Rector Street New York, New York Federal Deposit Insurance Corporation Washington, D.C. Federal Reserve Bank of New York Second District, 33 Liberty Street New York, New York (b) Whether it is authorized to exercise corporate trust powers. Yes Item 2. Affiliations with the Obligor. If the obligor is an affiliate of the trustee, describe each such affiliation. The obligor is not an affiliate of the trustee. Item 13. Defaults by the Obligor. (a) State whether there is or has been a default with respect to the securities under this indenture. Explain the nature of any such default. None
2 (b) If the trustee is a trustee under another indenture under which any other securities, or certificates of interest or participation in any other securities, of the obligors are outstanding, or is trustee for more than one outstanding series of securities under the indenture, state whether there has been a default under any such indenture or series, identify the indenture or series affected, and explain the nature of any such default. None Item 16. List of exhibits. List below all exhibits filed as part of this statement of eligibility. *1. A copy of the Charter of IBJ Schroder Bank & Trust Company as amended to date. (See Exhibit 1A to Form T-1, Securities and Exchange Commission File No. 22-18460). *2. A copy of the Certificate of Authority of the trustee to Commence Business (Included in Exhibit 1 above). *3. A copy of the Authorization of the trustee to exercise corporate trust powers, as amended to date (See Exhibit 4 to Form T-1, Securities and Exchange Commission File No. 22-19146). *4. A copy of the existing By-Laws of the trustee, as amended to date (See Exhibit 4 to Form T-1, Securities and Exchange Commission File No. 22- 19146). 5. Not Applicable 6. The consent of United States institutional trustee required by Section 321(b) of the Act. 7. A copy of the latest report of condition of the trustee published pursuant to law or the requirements of its supervising or examining authority.
* The Exhibits thus designated are incorporated herein by reference as exhibits hereto. Following the description of such Exhibits is a reference to the copy of the Exhibit heretofore filed with the Securities and Exchange Commission, to which there have been no amendments or changes. 3 NOTE In answering any item in this Statement of Eligibility which relates to matters peculiarly within the knowledge of the obligor and its directors or officers, the trustee has relied upon information furnished to it by the obligor. Inasmuch as this Form T-1 is filed prior to the ascertainment by the trustee of all facts on which to base responsive answers to Item 2, the answer to said Item is based on incomplete information. Item 2, may, however, be considered as correct unless amended by an amendment to this Form T-1. Pursuant to General Instruction B, the trustee has responded to Items 1, 2 and 16 of this form since to the best knowledge of the trustee as indicated in Item 13, the obligor is not in default under any indenture under which the applicant is trustee. 4 SIGNATURE Pursuant to the requirements of the Trust Indenture Act of 1939, the trustee, IBJ Schroder Bank & Trust Company, a corporation organized and existing under the laws of the State of New York, has duly caused this statement of eligibility & qualification to be signed on its behalf by the undersigned, thereunto duly authorized, all in the City of New York, and State of New York, on the 19th day of November, 1997. IBJ SCHRODER BANK & TRUST COMPANY By: /s/Luis Perez Luis Perez Assistant Vice President EXHIBIT 6 CONSENT OF TRUSTEE Pursuant to the requirements of Section 321(b) of the Trust Indenture Act of 1939, as amended, in connection with the issuance by CD Radio Inc., of its Senior Discount Notes, Due 2007, we hereby consent that reports of examinations by Federal, State, Territorial, or District authorities may be furnished by such authorities to the Securities and Exchange Commission upon request therefor. IBJ SCHRODER BANK & TRUST COMPANY By: /s/Luis Perez Luis Perez Assistant Vice President Dated: November 19, 1997 EXHIBIT 7 CONSOLIDATED REPORT OF CONDITION OF IBJ SCHRODER BANK & TRUST COMPANY OF NEW YORK, NEW YORK AND FOREIGN AND DOMESTIC SUBSIDIARIES REPORT AS OF JUNE 30, 1997
DOLLAR AMOUNTS IN THOUSANDS ASSETS Cash and balance due from depository institutions: Noninterest-bearing balances and currency and coin ..........................................................$ 41,319 Interest-bearing balances......................................................................................$ 314,579 Securities: Held-to-maturity securities.........................................................................$ 180,111 Available-for-sale securities.......................................................................$ 47,600 Federal funds sold and securities purchased under agreements to resell in domestic offices of the bank and of its Edge and Agreement subsidiaries and in IBFs: Federal Funds sold and Securities purchased under agreements to resell.........................................$ 694,859 Loans and lease financing receivables: Loans and leases, net of unearned income.....................................................$ 1,955,686 LESS: Allowance for loan and lease losses....................................................$ 62,876 LESS: Allocated transfer risk reserve........................................................$ -0- Loans and leases, net of unearned income, allowance, and reserve...............................................$ 1,892,810 Trading assets held in trading accounts............................................................................$ 603 Premises and fixed assets (including capitalized leases)...........................................................$ 3,709 Other real estate owned............................................................................................$ 202 Investments in unconsolidated subsidiaries and associated companies................................................$ -0- Customers' liability to this bank on acceptances outstanding.......................................................$ 81 Intangible assets..................................................................................................$ -0- Other assets.......................................................................................................$ 67,092 TOTAL ASSETS.......................................................................................................$ 3,242,965
LIABILITIES Deposits: In domestic offices........................................................................ $1,694,675 Noninterest-bearing ................................................................... $ 263,641 Interest-bearing ...................................................................... $1,431,034 In foreign offices, Edge and Agreement subsidiaries, and IBFs.............................. $1,121,075 Noninterest-bearing ................................................................... $ 17,535 Interest-bearing....................................................................... $1,103,540 Federal funds purchased and securities sold under agreements to repurchase in domestic offices of the bank and of its Edge and Agreement subsidiaries, and in IBFs: Federal Funds purchased and Securities sold under agreements to repurchase................. $ 25,000 Demand notes issued to the U.S. Treasury....................................................... $ 60,000 Trading Liabilities............................................................................ $ 140 Other borrowed money: a) With a remaining maturity of one year or less.......................................... $ 38,369 b) With a remaining maturity of more than one year........................................ $ 1,763 c) With a remaining maturity of more than three years..................................... $ 2,242 Bank's liability on acceptances executed and outstanding...................................... $ 81 Subordinated notes and debentures............................................................. $ -0- Other liabilities............................................................................. $ 69,908 TOTAL LIABILITIES............................................................................. $ 3,013,253 Limited-life preferred stock and related surplus.............................................. $ -0- EQUITY CAPITAL Perpetual preferred stock and related surplus................................................. $ -0- Common stock.................................................................................. $ 29,649 Surplus (exclude all surplus related to preferred stock)...................................... $ 217,008 Undivided profits and capital reserves........................................................ $ (17,000) Net unrealized gains (losses) on available-for-sale securities................................ $ 55 Cumulative foreign currency translation adjustments........................................... $ -0- TOTAL EQUITY CAPITAL.......................................................................... $ 229,712 TOTAL LIABILITIES AND EQUITY CAPITAL.......................................................... $ 3,242,965