Posted in industry | music | radio on February 17, 2009

Satellite

Liberty Media Corp. will invest $530 million in financially struggling satellite radio company Sirius XM Radio Inc., the companies said Tuesday.

The investment on the first business day comes after Sirius warned it could file for bankruptcy as early as Tuesday if it cannot successfully negotiate with its debt holders.

As part of the deal, Liberty will provide a $280 million senior secured loan to Sirius, $250 million of which will be funded on Tuesday. Sirius will use the proceeds of the loan to repay $171.6 million of its maturing 2-and-a-half percent convertible notes that had been due Tuesday. The rest will be used for general corporate purposes.

The loan bears a 15 percent interest rate and matures in December 2012.

The second phase of Liberty's investment provides another loan of $150 million to Sirius's subsidiary XM Satellite Radio. Liberty has also agreed to offer to buy up to $100 million of the loans outstanding under XM Satellite Radio's existing credit facilities from the lenders. [Yahoo News]

In related news, an American satellite collided with a Russian satellite.

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Comments (8)

by far the dumbest thing malone has done in a few years...

Posted by Anonymous | February 17, 2009 11:13 AM

motherfuckers took away fred. they deserve all they get.

Posted by Anonymous | February 17, 2009 1:09 PM

They didn't save Sirius XM from oblivion, they saved Mel Karamazin from Charlie Ergen.

Posted by Anonymous | February 18, 2009 12:57 AM

He must have a date with the dude from Deerhunter or maybe Jay Reatard?

Posted by louis | October 17, 2009 1:03 PM

It's a huge loan we are talking about. If Liberty Media was willing to put all these money and save Sirius from bankruptcy then Sirius remains one of the great radio stations, it's worth over $530 and that's a lot even for a Radio Company.

Posted by Cash Advance | February 26, 2010 4:27 PM

That is a big investment. With the way things have been going over the past couple of years, I'm not sure if that was a good idea.

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