XM Satellite Radio Inc. has announced a set of definitive financing agreements totaling $450 million -- consisting of $200 million in new funds from strategic and financial investors
and $250 million in payment deferrals and related credit facilities from General Motors.
The $200 million in new funding is in the form of 10% Senior Secured Discount Convertible Notes due in 2009 and a small concurrent common stock sale. Purchasers of the notes include American Honda Motor Co. Inc., Hughes Electronics Corp., The Hearst Corp., Columbia Capital LLC, AEA Investors Inc., Eastbourne Capital Management LLC, BayStar Capital II, L.P., and other parties. The notes are convertible into common stock at a price of $3.18 per share. Proceeds will be used for general corporate purposes.
In the other major element of the financing package, General Motors, which is currently factory-installing XM radios in 25 different 2003 vehicle lines, has agreed to defer or finance up to $250 million of payments through 2006.
"With this financing package, we believe we have achieved full funding through cash flow breakeven," said Hugh Panero, XM's president and CEO. "The financing also removes a major roadblock to our company being valued based on its marketplace progress, business plan execution and future economic potential -- all of which are exceptional," he added.
and $250 million in payment deferrals and related credit facilities from General Motors.
The $200 million in new funding is in the form of 10% Senior Secured Discount Convertible Notes due in 2009 and a small concurrent common stock sale. Purchasers of the notes include American Honda Motor Co. Inc., Hughes Electronics Corp., The Hearst Corp., Columbia Capital LLC, AEA Investors Inc., Eastbourne Capital Management LLC, BayStar Capital II, L.P., and other parties. The notes are convertible into common stock at a price of $3.18 per share. Proceeds will be used for general corporate purposes.
In the other major element of the financing package, General Motors, which is currently factory-installing XM radios in 25 different 2003 vehicle lines, has agreed to defer or finance up to $250 million of payments through 2006.
"With this financing package, we believe we have achieved full funding through cash flow breakeven," said Hugh Panero, XM's president and CEO. "The financing also removes a major roadblock to our company being valued based on its marketplace progress, business plan execution and future economic potential -- all of which are exceptional," he added.
media brand
0 Comments
See all comments