XM Satellite Radio Inc. has
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.
"With this financing package,
we believe we have achieved full funding through cash flow breakeven,"
said Hugh Panero, XM's president and CEO. "The financing also removes
a major roadblock to our company being valued based on its marketplace
progress, business plan execution and future economic potential
- all of which are exceptional," he added.
Based on sales-to-date and
projections through year-end, XM expects to have more than 350,000
radios (both retail and OEM) sold and ready for activation by Dec.
31, 2002. The actual year-end activated subscriber total (sales
which have resulted in activations) is expected to be between 340,000-350,000.