XM Satellite Radio [Nasdaq: XMSR] will be able to reduce the minimum participation of its existing noteholders in its refinancing plan from 90 percent to 75 percent, following approval of the plan by a key investor group and General Motors [NYSE: GM]. The plan will provide $450 million in new funding for the firm.

The scaled back level of support from noteholders will facilitate XM (Washington, D.C.) gaining approval for an exchange of its outstanding 14 percent senior secured notes due 2010, under the new funding plan that is expected to carry the company through cash-flow breakeven in the first half of 2004.

XM will close on the exchange offer only if the minimum participation level is satisfied, company officials said. All other terms and conditions of the exchange offer are unaffected. The deadline for acceptance is Jan. 23.