SATELLITE RADIO GETS SIRIUS CASH

Satellite radio broadcaster Sirius Satellite Radio has secured $150 million in financing, bringing its total base to $1.45 billion.

Lehman Commercial Paper, a subsidiary of Lehman Brothers, will provide Sirius with $150 million in credit under one condition; Sirius has to put a satellite in the air, reports Webnoize.

Sirius and rival XM Satellite Radio are both developing nationwide digital radio services that will offer upward of 100 channels of music, news, information and sports programs. The Sirius service is expected to launch by the end of this year; XM has targeted the first half of 2001. XM's total base of financing, to date, is $865 million.

Sirius will be able to draw the Lehman funds once it successfully launches one of its two satellites. Sirius-1, the company's first satellite, is at a launch site in Baikonur, Central Asia. Sirius-1 has a launch window of June 28 through July 3. Sirius-2 is scheduled for launch in September.

As part of the financing, Lehman will also receive warrants, exercisable under certain conditions, to purchase approximately 1.5% of the company.

While XM has close ties to General Motors, Sirius has equity and radio installation agreements with the other Big Three automakers, DaimlerChrysler and Ford Motor Co.