Sirius XM Radio retiring $681.5 million of debt

Sirius XM Radio retiring $681.5 million of debt more than 10 months early

Associated Press

NEW YORK (AP) -- Satellite radio broadcaster Sirius XM Radio is retiring $681.5 million of debt more than 10 months early.

The company said Tuesday that it is redeeming all of its outstanding 13 percent senior notes due 2013.

On Friday Liberty Media Corp. said that it increased its stake in Sirius XM and planned to take control of the company if federal authorities approve.

The conglomerate controlled by cable TV magnate John Malone said it bought 94.3 million shares in Sirius XM for $234.3 million, raising its stake to 48 percent.

It also said in a regulatory filing that it filed a new application with the Federal Communications Commission for consent to take control of Sirius XM. It said it plans to take more than 50 percent control of the New York-based company.

The FCC rejected Liberty's earlier application in May because it didn't establish that it intends to take actions that would give it full control.

Liberty saved Sirius XM from near-bankruptcy in February 2009 by agreeing to lend it up to $530 million in exchange for the preferred stock. Converting the stock would give it a 40 percent stake.

Liberty has said that it plans to spin off assets including Sirius into a separate company, separate from a company that would hold its Starz pay TV channels.

The spin-off is expected to be tax free and is planned to be completed by the end of the year.

Shares of Sirius XM Radio Inc. climbed 4 cents to $2.60 in afternoon trading.

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