XM Adds Another $25 Million To $475 Million Funding Package

SPACEMART

nohting like other people's money to launch your pet project

Washington - Jan 20, 2003
XM Satellite Radio said Friday that it had increased its financing commitments to $475 million with an additional $25 million commitment from investors spearheaded by Everest Capital Limited in the Company's proposed 10 percent Senior Secured Convertible Discount Notes due 2009.

The Company had previously announced a set of definitive financing agreements totaling $450 million -- consisting of $200 million in new funds from strategic and financial investors and $250 million in payment deferrals and related credit facilities from General Motors. The new funds component will be increased to $225 million.

Everest Capital has committed $15 million of the additional $25 million investment commitment. Everest also holds an investment position in XM's outstanding Existing Notes, and has indicated its intent to participate in the proposed Notes Exchange by tendering its total noteholdings in the Existing Notes.

"We are very supportive of the company's effort in its proposed financing and exchange offer. We are delighted to have the opportunity to invest alongside General Motors and the other members of the new investor group in support of executing XM's business plan," said Malcolm Stott, Director of Everest Capital Limited.

"We are delighted to add Everest Capital to our strong investor group and are appreciative of this indication of its continued support, including its intention to participate in the Notes Exchange" said XM President & CEO, Hugh Panero. "This additional investment gives us more financial flexibility and improves the probability of successfully completing our comprehensive financing package."

Yesterday XM announced it had received the necessary consents from an investor group and General Motors, which together are providing the original $450 million in new financial investment and financing support (now totaling $475 million with the additional $25 million in commitments) in conjunction with the proposed Notes Exchange, to reduce their closing condition for the minimum Notes Exchange participation threshold from 90 percent to 75 percent.

XM also amended the Notes Exchange to reduce the minimum participation condition to 50.1 percent. However, as described above, the General Motors and investor group financing transactions are currently conditioned upon 75 percent participation by existing noteholders in the exchange offer, and XM will close on the exchange offer only if the minimum participation condition of the financing transactions are satisfied or otherwise waived.

This condition to the financing transactions can be amended only if agreed to by both General Motors and two-thirds of the investor group including the additional commitments.

The deadline for acceptance of the Notes Exchange and consent solicitation remains unchanged and is scheduled for expiration midnight, January 23, 2003. All tendering noteholders must have tendered their notes by that time. Tendering noteholders should contact D. F. King, the Information Agent, at 800-714-3306 for copies of the offering documents and transmittal instructions.

XM said last week it had more than 360,000 subscribers.

CONSTELLATIONS

XM Reaches 360,000 Subs; Expects One Million In 2003

Las Vegas - Jan 10, 2003
XM Satellite Radio announced today it has signed up more than 360,000 subscribers, extending its market leadership in digital satellite radio.

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