Liberty Media Gets 12.5 Million Sirius XM Shares
| RADIO ONLINE | , , | :am CT |
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According to a filing with the SEC, Sirius XM issued 1 million shares of its convertible perpetual preferred stock series B-1 and 11.5 million shares of its convertible perpetual preferred stock series B-2 to Liberty Media in March in conjunction with $530 million in loans from Liberty to Sirius XM.
Under the first phase of the deal struck in March, the satcaster received a $280 million senior secured loan to repay $171.6 million of its maturing 2 1/2% convertible notes. The remainder was to be used for general corporate purposes. The loan will bear interest at a rate of 15%, mature in December 2012.
The second phase provided an additional loan of $150 million to XM Satellite Radio. Liberty has also agreed to offer to purchase up to $100 million of the loans outstanding under XM Satellite Radio's existing credit facilities from the lenders.
In addition, to the shares, Liberty received seats on the Sirius XM board of directors proportionate to its equity ownership.
