These excerpts taken from the SIRI 10-K filed Mar 10, 2009.
Cash (Used In) Provided by Financing Activities
Cash (Used In) Provided by Financing ActivitiesSTYLE="font-size:6px;margin-top:0px;margin-bottom:0px">
SIZE="2">Debt Maturing in 2009 and 2010. We have approximately $537,000 of debt maturing in 2009 and 2010, including:
As a result of the May 2010 maturities, our existing cash balances and our cash flows from operating activities may not
FACE="Times New Roman" SIZE="2">See Note 19 to the consolidated financial statements in Item 8 of this Annual Report on Form 10-K for additional information on certain of these transactions.STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">Credit Agreement with Space Systems/Loral. In July 2007, SIRIUS amended and restated its Credit Agreement with Space
Systems/Loral (the Loral Credit Agreement). Under the Loral Credit Agreement, Space Systems/Loral agreed to make loans to SIRIUS in an aggregate principal amount of up to $100,000 to finance the purchase of SIRIUS fifth and sixth
satellites. After April 6, 2009, Lorals commitment will be limited to 80% of amounts due with respect to the construction of our sixth satellite. Loans made under the Loral Credit Agreement will be secured by SIRIUS rights under the
Satellite Purchase Agreement with Space Systems/Loral, including SIRIUS rights to the new satellites. The loans are also entitled to the benefits of a subsidiary guarantee from Satellite CD Radio, Inc., the subsidiary that holds SIRIUS
FCC license, and any future material subsidiary that may be formed by SIRIUS. The maturity date of the loans is the earliest to occur of (i) June 10, 2010, (ii) 90 days after our sixth satellite becomes available for shipment,
and (iii) 30 days prior to the scheduled launch of the sixth satellite. Any loans made under the Loral Credit Agreement generally will bear interest at a variable rate equal to three-month LIBOR plus 4.75%. The Loral Credit Agreement permits
SIRIUS to prepay all or a portion of the loans outstanding without penalty.
SIRIUS has not requested any loans under the Loral Credit
believe that both SIRIUS and XM have sufficient cash, cash equivalents and marketable securities to cover the estimated funding needs through cash flow breakeven, the point at which revenues are sufficient to fund expected operating expenses,
capital expenditures, working capital requirements, interest payments and taxes. The ability to meet our debt and other obligations depends on our future operating performance and on economic, financial, competitive and other factors. We continually
review our operations for opportunities to adjust the timing of expenditures to ensure that sufficient resources are maintained. We have the ability and intend to manage the timing and related expenditures of certain of activities, including the
launch of satellites, the deferral or payment of bonuses with equity, the deferral of capital projects, as well as the deferral of other discretionary expenses. Our financial projections are based on assumptions, which we believe are reasonable but
contain significant uncertainties. There can be no assurance that our plan will be successful.
We are the sole stockholder of XM Holdings and its subsidiaries and its business is operated as an
SIZE="2">Tightening credit policies could also adversely impact our operational liquidity by making it more difficult or costly for our subscribers to access credit, and could have an adverse impact on our operational liquidity as a result of