Radio co. recently launched new servie in southern half of U.S.
NEW YORK — Nascent radio satcaster XM Satellite Radio has secured $66 million worth of additional financing from investors Boeing Capital Services Corp. and Boeing Satellite Systems Intl., scheduled to close this month.
Under terms of the deal, Boeing Capital Services Corp. will provide $35 million in new debt financing, while Boeing Satellite Systems Intl. Inc. will provide $31 million in restructured obligations.
Washington D.C.-based XM began the second phase of its rollout on Thursday, launching its 100-channel music and news service in cities in the southern half of the United States, including Miami, Atlanta, Phoenix and Los Angeles.
It started a campaign to trim costs by shrinking its advertising campaign and scaling down its infrastructure.
The new financing and cost-cutting steps leave XM with enough funding until the second quarter of next year, and the company is already considering further deals to raise capital. XM spent $776 million to build its network.
Rival Sirius Satellite Radio hit a snag earlier this week when its chief exec, David Margolese, ankled, and the company said it would delay its launch until 2002. Sirius blames the delay on problems with the chip-sets found in its radios.
(Marc Graser contributed to this report).