CHICAGO -- XM Satellite Radio Holdings Inc. on Tuesday said it will ask stockholders to approve a proposal to increase its authorized common stock to 615 million shares from 240 million at its annual meeting next month.
The Washington D.C.-based company, which provides radio service via satellite, said in a proxy statement with the U.S. Securities and Exchange Commission that it needed to issue additional shares in return for financing from General Motors and other investors.
The company last month closed a deal to get $225 million in new funds from investors and $250 million in payment deferrals and related credit facilities from General Motors, which installs XM radios in its vehicles.
XM must issue additional shares "upon conversion of the convertible notes, exercise of warrants and (at our option) in payment of interest," it said in the filing.
The company also said it will need authorized but unissued shares of Class A common stock for general corporate purposes.
XM will hold its annual stockholders' meeting in Washington on March 27.