I’m breathing better now. Liberty Media just saved Sirius XM’s butt from filing bankruptcy. Full story here.

BREAKING: Sirius XM Radio and Liberty Media reach $530 million agreement
By Ryan Saghir on February 17, 2009 8:00 AM | 64 Comments
John C. Malone and Mel KarmazinDONE DEAL: Sirius XM Radio Inc. and Liberty Media Corporation have reached an agreement in which Liberty would invest an aggregate amount of $530 million into Sirius XM, in return for an equity stake in the company.

The investment will be provided in two separate phases:

1. Liberty will loan Sirius XM Radio $280 million; $250 million of which will be funded today. The loan will bear an interest radio of 15% and come due in December 2012. This loan will save Sirius XM Radio from bankruptcy.

2. The 2nd phase will be a loan of $150 million to XM Satellite Radio (Sirius XM’s wholly owned subsidiary). Liberty has also agreed to offer to purchase up to $100 million of the loans outstanding under XM Satellite Radio’s existing credit facilities.

Upon completion of the second phase of the Liberty investments, Sirius XM will give Liberty a total of 12.5 million shares of preferred stock convertible into 40% of the common stock of SIRI.

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