News Releases

Liberty Media Invests $530 Million in Sirius XM Radio


NEW YORK, February 18, 2009 -- Liberty Media Corporation will invest $530 million in secured debt of Sirius XM Radio Inc., in a transaction that will give the media conglomerate a 40 percent equity stake in the satellite radio company. The agreement, announced Tuesday, February 17, 2009, allows Sirius XM to avoid a bankruptcy filing. 

A Baker Botts team, led by Marc Leaf and Martin Toulouse, worked with general counsel Charles Tanabe and deputy general counsel Craig Troyer of Liberty Media Corporation, a long-time firm client.

Under the terms of the agreements, the investments will be funded in two separate phases. The first phase of the transaction included a $280 million senior secured loan from Liberty to Sirius, which allowed Sirius to pay $172 million of debt due on February 17, 2009.

The second phase of the deal, which is subject to conditions, involves a $150 million senior secured loan to Sirius subsidiary XM Satellite Radio and an offer to buy up to $100 million in outstanding loans under XM Satellite’s’ existing senior secured credit facilities. In connection with the second phase of the transaction, Sirius will issue Liberty Media 12.5 million shares of preferred stock, convertible into 40 percent of its common stock, according to a statement issued by the companies.

Liberty Media chairman John Malone and president and CEO Greg Maffei are expected to join Sirius’ board.

The Liberty Media news release concerning the transaction is available here.

About Baker Botts L.L.P.
Baker Botts L.L.P., dating from 1840, is a leading international law firm with offices in Austin, Beijing, Dallas, Dubai, Hong Kong, Houston, London, Moscow, New York, Palo Alto (California), Riyadh and Washington. With approximately 800 lawyers, Baker Botts provides a full range of legal services to international, national and regional clients. For more information, please visit

For more information, please contact:
Michael Cinelli
Associate Director, Public Relations
Baker Botts L.L.P.
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