XM Gets $25 Million Funding Commitment

XM Satellite Radio increased its financing commitments to $475 million with an additional $25 million commitment from investors spearheaded by Everest Capital Limited in the Company’s proposed 10% Senior Secured Convertible Discount Notes due 2009.
The Company had previously announced a set of definitive financing agreements totaling $450 million – consisting of $200 million in new funds from strategic and financial investors and $250 million in payment deferrals and related credit facilities from General Motors. The new funds component will be increased to $225 million.
Everest Capital has committed $15 million of the additional $25 million investment commitment. Everest also holds an investment position in XM’s outstanding Existing Notes, and has indicated its intent to participate in the proposed Notes Exchange by tendering its total noteholdings in the Existing Notes.
XM previously said it received the necessary consents from an investor group and General Motors, which together are providing the original $450 million in new financial investment and financing support (now totaling $475 million with the additional $25 million in commitments) in conjunction with the proposed Notes Exchange, to reduce their closing condition for the minimum Notes Exchange participation threshold from 90% to 75%.