XM Satellite Radio says it needs $120 million in financing to fulfill contract obligations to Major League Baseball.
The satcaster said in a filing with the Securities and Exchange Commission last week that there could be an effect on its financial position if it can’t find the financing. XM is required to set aside $120 million in an escrow account as part of its eight-year contract with MLB.
A bond that XM secured in 2006 to fulfill that obligation was set to expire June 30, XM told the SEC.
XM was looking for another source of financing.