XM Satellite Radio Inc. is negotiating to pay some of its debt to General Motors (GM) early, XM said in an April 17 filing with the U.S. Securities and Exchange Commission.

XM hopes to make a prepayment of about $240 million to retire about $320 million in fixed payments due in 2007, 2008 and 2009. XM also said it may increase the size of its senior secured credit facility with GM, which may be used to finance payments, from $100 million to $150 million.

XM also announced that in connection with previously announced debt refinancing plans, the company hopes to sell an aggregate of $600 million of notes to institutional buyers. The net proceeds from the transactions will be used to pay debt, XM said. In connection with the planned refinancing, XM said it expected to receive commitments for a new $250 million revolving credit facility with a group of banks. XM also will have the right to increase the credit facility by up to $100 million.