Liberty Media (LCAPA)

Add a New Bulls Reason Company: Liberty Media (LCAPA) Current price: Headline: (100 character max) Analysis: Cancel 100% agree 2 votes   Liberty to get board seats and 40% of Sirius-XM Top Contributor: Bret Holmes | Created when NASDAQ:LCAPA was $4.84 | Edit | History Liberty Media Corp. (LCAPA) will acquire two board seats and as much as 40% of Sirius XM Radio Inc. (SIRI) in exchange for $530 million in loans. The deal creates a satellite-media juggernaut combining DirectTV Group Inc. (DTV), the largest satellite-TV provider, and the sole U.S. satellite-radio operator. Under terms of the agreement, Liberty would provide a $280 million senior secured loan to help Sirius repay $171.6 million in convertible notes due yesterday (Tuesday), which are owned by Ergen. At a later date, Liberty would provide another $150 million loan to XM Satellite Radio, Sirius XM’s wholly owned subsidiary, and purchase up to $100 million of XM’s credit facilities, according to Bloomberg News. The loan will pay Liberty a whopping 15% interest rate and mature in December 2012. When the second loan is completed, Liberty will get 12.5 million shares of preferred stock convertible into 40% of Sirius XM common stock. (100 character max) Cancel

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