XM: We Need $120 Million In Financing For MLB Deal Escrow
May 27, 2008 at 5:26 AM (PT)
XM SATELLITE RADIO is warning that it needs $120 million in financing to satisfy its contract with MAJOR LEAGUE BASEBALL.
In an SEC filing last week, XM said that it needs to put $120 million in escrow as part of the eight-year deal with MLB, and a two-year surety bond that presently covers that obligation will expire JUNE 30th. The satellite company placed $120 million in a new escrow account, including $62.5 million of debt from its credit line and $57.5 million in cash, but says it needs the financing to release the cash and maintain its liquidity.
XM also told the SEC that it expects that it will obtain a 90-day interim agreement with lenders to allow the company to reduce the amount of cash on hand it needs to maintain from $75 million to $50 million.