Done Deal: Liberty Closes On Sirius XM
March 6, 2009 at 10:33 AM (PT)
LIBERTY MEDIA CORP.has announced the closing of the second, and final, phase of its investment in SIRIUS XM. SIRIUS XM also announced that XM SATELLITE RADIO amended and extended its existing $350 million credit facilities. XM's existing term loan and revolving loan have been rolled into a single term loan facility.
"We are excited to have closed the second and final phase of our investment agreement with LIBERTY MEDIA," SIRIUS XM CEO MEL KARMAZIN said. "It is an example of the confidence our lenders and LIBERTY have in our business model. These transactions resolve all of the uncertainty surrounding the company's and its subsidiaries' debt maturing in 2009. Having addressed our near-term financial obligations, we remain focused on continuing to deliver on all the promise of the merger of SIRIUS and XM -- a more efficient company offering the best programming through new packages to more subscribers."
"We are pleased to have completed the second phase of this investment," LIBERTY Pres./CEO GREG MAFFEI said. "This closing allows LIBERTY to align itself with one of the most exciting companies in media today."
Under the existing terms of their agreement, SIRIUS XM has issued LIBERTY an aggregate of 12.5 million shares of new preferred stock convertible into 40% of the common stock of SIRIUS XM.