Liberty, Sirius XM Close On Deal
NEW YORK -- March 6, 2009: Liberty Media and Sirius XM Radio said Friday that they've closed on the second, and final, phase of the investment agreement made last month. With that agreement, Liberty loaned Sirius XM $250 million immediately as part of an aggregate of $530 million in loans -- fending off an aggressive takeover push by EchoStar and perhaps a bankruptcy filing. Sirius XM has issued Liberty 12.5 million shares of new convertible preferred stock, convertible into 40 percent of the common stock of the company.
"We are excited to have closed the second, and final, phase of our investment agreement with Liberty Media," Sirius XM CEO Mel Karmazin said. "It is an example of the confidence our lenders and Liberty have in our business model. These transactions resolve all of the uncertainty surrounding the company's and its subsidiaries' debt maturing in 2009. Having addressed our near-term financial obligations, we remain focused on continuing to deliver on all the promise of the merger of Sirius and XM -- a more efficient company offering the best programming through new packages to more subscribers."
Liberty President/CEO Greg Maffei said, "We are pleased to have completed the second phase of this investment. This closing allows Liberty to align itself with one of the most exciting companies in media today."
Sirius XM also announced that XM Satellite Radio has amended and extended its existing $350 million credit facilities, rolling a term loan and a revolving loan into a single term loan. As agreed, Liberty has purchased $100 million of that debt. It's also committed to lend XM an additional $150 million to repay part of the outstanding principal on XM Satellite Radio Holdings notes due December 1.
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