XM Satellite Radio has announced a definitive agreement for a set of financial arrangements totaling $450 million. These include $200 million in new funds from strategic and financial investors and $250 million in payment deferrals and related credit facilities from General Motors.
XM also said it is on track to have more than 350,000 radios, retail and OEM, sold and ready for activation by the time 2002 numbers are final.
The $200 million in new funding includes 10 percent Senior Secured Discount Convertible notes, due in 2009, and a small concurrent common stock sale. Proceeds will be used for general corporate purposes.
In the other major element of XM’s financing package, GM has agreed to defer or finance up to $250 million in payments through 2006. The $250 million consists of the exchange of about $115 million in fixed payments through 2006, a $100 million credit facility due 2009 and the right to satisfy to $35 million of certain future payments obligations in stock rather than cash.