Sirius Satellite Radio has received a cash infusion of $250 million from Morgan Stanley under a senior secured term loan. The term facility matures in 5.5 years and has covenants similar to Sirius' existing 9 5/8% Senior Notes.

But Bank of America analyst Jonathan Jacoby feels that more financing might be needed if the merger doesn’t go through.

Jacoby noted that there is a risk that Sirius isn't fully funded. Bank of America's models show that, prior to this $250M announcement, Sirius' cash balance would dip to roughly $80M before they achieve consistent positive free cash flow in late 2008.

Bear Stearns analyst Bob Peck wrote in a recent note that they felt the liquidity concerns were overblown. Bear Stearns' own models showed that Sirius needed about $200M, in addition to refinancing the $300M that Sirius owes in early 2009.

In a related point, Ant & Sons points out that there are several catalysts that need to occur before the sentiment on Sirius improves. That despite the fact that Bear Stearns, Barrington and UBS have all upgraded SIRI since late April.