XM Radio Closes Financing Package

XM Satellite Radio closed on its $475 million funding package – consisting of $225 million in new funds from strategic and financial investors and $250 million in payment deferrals and related credit vehicles from General Motors.
XM also closed its exchange offer with respect to its outstanding 14% Senior Secured Notes due 2010. XM had offered its noteholders a package of cash and new securities, including new 14% Senior Secured Discount Notes due 2009 and warrants to purchase common stock. Over $300 million, representing 92% of the outstanding issue of Existing Notes, were tendered. Bear, Stearns, Merrill Lynch and Veronis Suhler Stevenson. advised XM on these transactions.
XM President/CEO Hugh Panero said the re-financing gives the company a clear path to cashflow breakeven in 2004.