XM Satellite Radio Holdings Inc. announced Monday that it has put together a $450 million financing package that includes $200 million in cash from new investors and restructuring of $250 million in existing debt owed to General Motors Corp.
The new investors include American Honda Motor Co. Inc., Hughes Electronics Corp., Hearst Corp., Columbia Capital, AEA Investors Inc., Eastbourne Capital Management LLC, BayStar Capital and others.
The new notes are convertible into common stock at $3.18 per share.
FM, which is installing XM radios in 25 of its 2003 vehicle lines, agreed to defer or finance debt it is entitled to receive.
Additionally, XM said it will exchange all $325 million of discount notes due 2009.
XM chief executive Hugh Panero said he wants to remove doubt about the company's ability to fund operations until cash flow is sufficient to break even.
Based on sales to date, XM predicted that it would have more than 350,000 radios sold and ready for activation by New Year's Eve.