XM Satellite Radio [XMSR] has received tenders and consents from a majority of the holders of its senior secured notes due 2010. In addition, XM has received the necessary approvals from General Motors [GM] and its investor group, which together have committed $475 million in financial support and funding, to lower the minimum participation threshold in the exchange offer to 50.1 percent. As a result, the company expects to complete the exchange offer and close the funding package subject to customary closing conditions.

XM is offering a package of cash and new securities, including new 14 percent senior secured discount notes due 2009 and warrants to purchase common stock, to noteholders electing to participate in the exchange. The new senior secured notes will also share in an improved collateral package consisting of substantially all the assets of the company.