Report: Liberty Offers Bridge Loan To Sirius XM
February 13, 2009 at 6:10 PM (PT)
The NEW YORK POST is reporting that LIBERTY MEDIA is offering SIRIUS XM RADIO a bridge loan to pay the $175 million in debt coming due TUESDAY (2/17) and buy the foundering satellite radio company three months to restructure debt soming due in MAY. The loan would help SIRIUS XM avoid filing Chapter 11 bankruptcy or an unfriendly takeover by CHARLIE ERGEN's ECHOSTAR, whose DISH NETWORK is a bitter rival of LIBERTY's DIRECTV.
Earlier in the day, THESTREET.COM reported that SIRIUS XM had significantly narrowed the divide in talks with satellite mogul ERGEN over a deal to save the company from a bankruptcy filing, citing a WALL STREET JOURNAL report. THE JOURNAL noted that the gap between what ERGEN has proposed and SIRIUS has asked for has narrowed, but the parties haven't reached agreement yet on other, nonfinancial issues. ERGEN is prepared to let SIRIUS CEO MEL KARMAZIN retain his position, the newspaper reported.
SIRIUS XM Announces Exchange Of Existing Convertible Senior Notes
SIRIUS XM also announced TODAY that XM SATELLITE RADIO HOLDINGS INC., its wholly-owned subsidiary, had exchanged approximately $172.5 million aggregate principal amount of its outstanding 10% Convertible Senior Notes due DECEMBER 2009 for a like principal amount of its newly issued Senior Secured Notes due 2011. An aggregate of $400 million in principal amount of the 10% Convertible Senior Notes due DECEMBER 2009 was outstanding prior to this transaction.