[Satellite Today 02-17-09] Sirius XM Radio and Liberty Media Corp. have entered into agreements for Liberty to invest $530 million in the form of loans to Sirius XM and its subsidiaries in an attempt to save the satellite radio provider from bankruptcy, the companies announced Feb. 17.
    The funding will come in two phases. The first phase includes a $280 million senior secured loan from Liberty to Sirius XM — $250 million of which will be funded immediately. The proceeds of that loan will be used to repay $171.6 million of notes due Feb. 17 and for general corporate purposes, including working capital and transaction costs.
    The second phase provides an additional loan of $150 million to XM Satellite Radio, Sirius XM’s wholly owned subsidiary. Liberty 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.
    Upon completion of the second phase of the Liberty investments, Sirius XM said it will issue Liberty an aggregate of 12.5 million shares of preferred stock convertible into 40 percent of the common stock of Sirius XM. John Malone, Liberty’s chairman, and Greg Maffei, president and CEO of Liberty, also  will join the Sirius XM board of directors.