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NEW
DELHI: Liberty Media Corp. will be investing $530 million
in satellite radio company Sirius XM Radio Inc.
As
part of the deal, Liberty will provide a $280 million senior
secured loan to Sirius out of which $250 million will be used
by Sirius to repay a loan of $171.6 million of its maturing
two-and-a-half percent convertible notes while the rest will
be used for general corporate purposes. The loan bears a 15
per cent interest rate and matures in December 2012.
In
the second phase, Liberty will provide another loan of $150
million to Sirius's subsidiary XM Satellite Radio.
Additionally,
Liberty has agreed to offer to buy up to $100 million of the
loans outstanding under XM Satellite Radio's existing credit
facilities from the lenders. In exchange, Liberty will get
12.5 million shares of preferred stock convertible into 40
percent of Sirius's common shares, and two seats on the company's
board.
According
to the company, Liberty chairman John Malone and president
and chief executive Greg Maffei will join the board of Sirius.
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