Sirius Satellite Radio has obtained a $250 million senior secured term loan commitment from Morgan Stanley Senior Funding Inc., Sirius announced June 5.

The facility will mature in five and one-half years and have covenants substantially similar to those under the company’s existing 9-5/8 percent senior notes, with proceeds to be used for general corporate purposes. Morgan Stanley is acting as the sole lead arranger and has committed to provide the entire principal amount of the facility, subject to customary closing conditions.

In a statement, David Frear, Sirius’ chief financial officer and executive vice president, said “this transaction takes advantage of favourable market conditions and significantly strengthens our balance sheet.”