XM sale/leaseback deal on XM-4 satellite?

XM Satellite Radio is supposedly negotiating a sale and leaseback deal for their XM-4 satellite, according to UBS analyst Lucas Binder.

The deal could yield up to $300 million in cash for XM and would remove the need for the company to access its revolving credit line. It would also provide liquidity from a previously non-liquid asset, said Binder.

He also said the deal should be structured as a capital lease.

[Barron's Tech Trader Daily via SSG]