Sirius XM Gets a $530 Million Dollar Loan from Liberty Media 
Home Theater News XM-Satellite Radio News
Written by AVRev.com   
Tuesday, 17 February 2009

Liberty Media has struck a deal with the ailing Sirius XM.  Liberty will loan Sirius $530 million, in exchange for equity and several seats on the company’s board.  There are two phases to this cash transfer.  $280 million will be a senior secured loan, and $250 of this will be in Sirius’ hands today.

This money will be used to pay off the $171.6 million in debt that is due today, to keep Sirius from being forced to file for bankruptcy.  The remaining money will be kept by Sirius to be used for general business purposes.

Phase two will see $150 million being given directly to XM Satellite Radio, now entirely owned by Sirius.  Upon the end of phase two, Sirius will give Liberty Media, who owns a controlling interest in DirecTV, 12.5 million shares in the company, and two seats on the board.  These conditions are not solid yet, and could see some readjustments as the deal closes.







Like this article? Bookmark and share with any of the sites below.
Digg!Reddit!Del.icio.us!Google!StumbleUpon!Yahoo!Free social bookmarking plugins and extensions for Joomla! websites!
 
Joomla SEF URLs by Artio