Contact Us

Liberty Media investing in (saving) Sirius XM Radio

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.

Check It Out

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to http://www.brooklynvegan.com using your original account information.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for BrooklynVegan quickly by connecting your Facebook account. It's just as secure and no password to remember!