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XM Get $66M Package, Begins Southern Rollout

10/18/2001 11:25:00 AM Eastern

Washington, D.C. - XM Satellite Radio received $66 million in new financing and gave further details on its service rollout in southern states.

On the financial side, the company reached agreement on the basic terms of a $66 million funding package, including $35 million in new debt financing with Boeing Capital Services Corporation and $31 million in restructured obligations with Boeing Satellite Systems International.

XM president and CEO Hugh Panero said that with this financial package, plus existing funds in excess of $125 million, the company has enough funds to 'drive its business deep into the second quarter of 2002.'

XM expanded its launch to the entire southern half of the U.S., including Los Angeles, Houston, New Orleans, Atlanta and Miami, covering a combined 136 million people. In the next two weeks retailers in the southeast and the southwest will be receiving XM radios. Those chains include Best Buy, Circuit City, Tweeter, participating RadioShack stores, Sears, Crutchfield, Good Guys, CarToys, Audio Express, Ultimate Electronics and Sound Advice.