Financially troubled Sirius XM has gotten an infusion of money from Liberty Media as major cable player John Malone (Liberty chairman), continues to move into the satellite orbit.
Liberty will invest about $530 million in the satellite radio company in two phases, a $280 million loan (at 15% interest, due in 2012) to help Sirius XM pay off its notes due today (Feb. 17), with the balance for working capital and other costs; and a second tranche of $171.6 million to XM and an offer to buy up $100 million in XM Sirius loans.
Liberty gets 12.5 million shares of preferred stock, convertible to a 40% stake in the company. Liberty also gets 40% worth of seats on the board, with Malone expected to have one of those seats.
Liberty last year bought News Corp. and Bank of America's stakes in satellite TV service DirecTV.