spacetoday.net: XM wins $450 million financing package

Posted: Tue, Dec 24, 2002, 11:17 AM ET (1617 GMT)
XM Satellite Radio announced Monday that it has secured a $450 million financing package that will allow the company to continue operations until it reaches the breakeven point. XM said that $200 million of the package comes in the form of convertible notes due in 2009. The remaining $250 million involves a renegotiation of payments due to General Motors, a major investor in XM. The payments, due through 2006, have been converted into convertible notes, a line of credit, and stock. Company officials said the financing package should be sufficient to see the satellite radio company through to cash-flow breakeven, which the company forecasts to be in mid-2004. XM had been in danger of running out of money by early 2003 had the financing deal not been reached. XM's competitor in the satellite radio market, Sirius Satellite Radio, is currently negotiating a refinancing deal the company announced in October.