XM Satellite Radio announced that it has increased its financing commitments to $475 million with an additional $25 million commitment
from investors, spearheaded by Everest Capital Ltd. in the company's proposed 10% Senior Secured Convertible Discount Notes due 2009.
The company had previously 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 new funds component will be increased to $225 million.
Everest Capital has committed $15 million of the additional $25 million investment commitment. Everest also holds an investment position in XM's outstanding existing notes, and has indicated its intent to participate in the proposed notes exchange by tendering its total noteholdings in the existing notes.
"We are very supportive of the company's effort in its proposed financing and exchange offer. We are delighted to have the opportunity to invest alongside General Motors and the other members of the new investor group in support of executing XM's business plan," said Malcolm Stott, director of Everest Capital Ltd.
"We are delighted to add Everest Capital to our strong investor group and are appreciative of this indication of its continued support, including its intention to participate in the notes exchange" said XM President and CEO, Hugh Panero.