XM Radio 2010 Annual Report Download - page 110

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We accounted for the Series B Preferred Stock by recording a $227,716 increase to additional paid-in capital,
excluding issuance costs, for the amount of allocated proceeds received and an additional $186,188 increase in paid-
in capital for the beneficial conversion feature, which was immediately recognized as a charge to retained earnings.
Loan Investments
On February 17, 2009, SIRIUS entered into a Credit Agreement (the “LM Credit Agreement”) with Liberty
Media Corporation, as administrative agent and collateral agent, and Liberty Media, LLC, as lender. The LM Credit
Agreement provided for a $250,000 term loan and $30,000 of purchase money loans. In August 2009, we repaid all
amounts due and terminated the LM Credit Agreement in connection with the issue and sale of SIRIUS’
9.75% Senior Secured Notes due 2015.
On February 17, 2009, XM entered into a Credit Agreement with Liberty Media Corporation, as administrative
agent and collateral agent, and Liberty Media, LLC, as lender. On March 6, 2009, XM amended and restated that
credit agreement (the “Second-Lien Credit Agreement”) with Liberty Media Corporation. In June 2009, XM repaid
all amounts due and terminated the Second-Lien Credit Agreement in connection with the issue and sale of its
11.25% Senior Secured Notes due 2013.
On March 6, 2009, XM amended and restated the $100,000 Term Loan, dated as of June 26, 2008 and the
$250,000 Credit Agreement, dated as of May 5, 2006. These facilities were combined as term loans into the
Amended and Restated Credit Agreement, dated as of March 6, 2009. Liberty Media, LLC, purchased $100,000
aggregate principal amount of such loans from the existing lenders. In June 2009, XM used a portion of the net
proceeds from the sale of its 11.25% Senior Secured Notes due 2013 to extinguish the Amended and Restated Credit
Agreement.
Liberty Media has advised us that as of December 31, 2010 and 2009, respectively, it owned the following:
December 31,
2010
December 31,
2009
9.625% Senior Notes due 2013 ............................... $ — $ 55,221
8.75% Senior Notes due 2015................................ 150,000 —
9.75% Senior Secured Notes due 2015 ......................... 50,000 50,000
11.25% Senior Secured Notes due 2013 ........................ — 87,000
13% Senior Notes due 2013 ................................. 76,000 76,000
7% Exchangeable Senior Subordinated Notes due 2014 . . ........... 11,000 11,000
7.625% Senior Notes due 2018 ............................... 50,000 —
Total principal debt ....................................... 337,000 279,221
Less: discounts ......................................... 11,093 15,642
Total carrying value debt ................................... $325,907 $263,579
In October 2010, Liberty Media tendered its $87,000 of the 11.25% Senior Secured Notes due 2013 and
purchased $50,000 of the 7.625% Senior Notes due 2018 at issuance.
As of December 31, 2010 and 2009, we recorded $9,765 and $8,523, respectively, related to accrued interest
with Liberty Media to Related party current liabilities. We recognized Interest expense associated with debt held by
Liberty Media of $40,169 and $79,640 for the years ended December 31, 2010 and 2009, respectively.
SIRIUS Canada
In 2005, we entered into a license and services agreement with SIRIUS Canada. Pursuant to such agreement,
SIRIUS is reimbursed for certain costs incurred to provide SIRIUS Canada service, including certain costs incurred
F-22
SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)