Sirius XM, Liberty Close Investment Deal

Sirius XM (SIRI Quote) said it has completed the second and final phase of an investment by Liberty Media.

In February, Liberty helped save Sirius XM from a potential bankruptcy filing with a $530 million loan infusion giving billionaire John Malone's company a 40% stake in the satellite radio provider. Liberty's rescue of Sirius XM came in two phases, with the first half used to pay off a chunk of Sirius XM's maturing debt.

The second stage of the Liberty investment called for another $150 million loan to XM Satellite Radio to be used to repay a portion of debt due in May, with an agreement to buy $100 million in XM loans outstanding. Under the terms of their agreement, Sirius XM has issued Liberty 12.5 million shares of new preferred stock convertible into 40% of common stock.

In addition, Sirius XM said it has reached an agreement with lenders to extend the outstanding loans due in May. XM Satellite Radio amended and extended its existing $350 million credit facilities, the company said.

"These transactions resolve all of the uncertainty surrounding the company's and its subsidiaries' debt maturing in 2009," Sirius XM CEO Mel Karmazin said in a statement.

Shares of Sirius XM added 1 cent, or 11.5%, to close at 14.5 cents a share.

Next up for the New York-based satellite radio company is the filing of its 10-K annual report with the Securities and Exchange Commission, expected on or before March 17. On that day, Sirius XM said it will also hold a conference call to discuss its financial and operating results.