XM to Add $66 Million to Coffers

XM Satellite Radio Inc. and Boeing Capital Services Corporation have inked an agreement on the basic terms of a $66 million funding package, including $35 million in new debt financing with Boeing and $31 million in restructured obligations with Boeing Satellite Systems International, Inc. The company expects to close these transactions later this month.
The news comes as XM expanded its product launch to the southwest and southeast.
In light of current financial market conditions and the aftershock of recent national events, XM has refocused its marketing strategy on key early adopter consumer segments, while maintaining adequate financial resources to sustain its business momentum until a stable financing climate is reestablished. The company is paring down operating expenses and, with $125 million in funds, says it has enough money to operate “deep” into Q2.