XM Satellite Radio has reworked its credit facility specifically for the Sirius-XM merger, as well as its agreements with General Motors, it was revealed today in an SEC filing.
First, they amended their current $250 million credit facility. Simply put: should the merger be consummated, the facility will continue to be available.
Next up, XM restated and amended their agreement with GM, rolling together the separate distribution and credit agreements. The terms are similar to that of the previous agreements, except for a new minimum pre-marketing cash flow threshold for 2008 that XM will need to meet in order to make draws under the GM credit facility in 2009.
XM has a $150 million credit facility with GM.