XM Satellite Radio Holdings Inc. and XM Satellite Radio Inc. completed a refinancing transaction intended to replace higher interest rate debt with new lower interest rate debt, XM announced April 13.

These transactions are expected to lower XM’s ongoing interest expense and extend the maturity dates of the company’s debt portfolio, as well as provide lower cost standby liquidity through the bank revolver.

XM has launched a cash tender to acquire separate groups of notes due in 2009 and 2010. In connection with the offer, XM expects to complete a private placement of new unsecured floating rate and fixed rate senior notes.

Once the refinancing is complete, XM plans to establish a $230 million revolving credit facility with a group of banks and other financial institutions