XM Borrows $100M, Extends Chairman Parsons' Contract
June 27, 2008 at 5:07 AM (PT)
XM SATELLITE RADIO HOLDINGS INC. has taken a $100 million term loan from UBS AG and said it used part of the loan to repay a draw under its $150 million GENERAL MOTORS CORP. credit facility, reports THE WASHINGTON BUSINESS JOURNAL. XM SATELLITE now has full access to its $150 million credit facility, the company said in a filing with the Securities and Exchange Commission.
The D.C.-based satcaster also extended the contract with Chairman GARY PARSONS until NOVEMBER 2009. PARSONS, 58, has been Chairman since 1997. His current contract was set to expire JUNE 30th. XM SATELLITE says his new contract does not include any changes to his salary or bonus.
XM and rival SIRIUS SATELLITE RADIO continue to wait for FCC approval for their merger. FCC chairman KEVIN MARTIN recommended approval of the merger on JUNE 16th, but the commission has not said when its members will vote.
XM to Commence Exchange Offer for its 1.75% Senior Convertible Notes Due 2009
XM TODAY announced that it had reached an agreement with holders of approximately 94.6% of its $400 million aggregate principal amount of 1.75% Senior Convertible Notes due 2009.
Pursuant to the agreement, XM will commence, prior to JULY 10th, 2008, an exchange offer to exchange new senior convertible notes due 2009 of XM for the existing notes. The new notes will bear interest at a rate of 10%, but will otherwise contain substantially the same terms as the existing notes.