Sirius and Liberty, 09' Debt Financed

Sirius XM Radio (NASDAQ:SIRI) and Liberty Media Corp (LINTA) have come to an arrangement that takes care of Sirius' debt issues for 2009.

Shares of SIRI closed at 14 Cents up 11% on the news, which works out to be almost 2 Cents, wow. Today Sirius and Liberty completed the remainder of a $530 million capital infusion from John Malone's Liberty Media Corp (LINTA.O) that the satellite radio company said resolves its looming debt deadlines this year.

The deal solves the most pressing critical financial issue for the pay-radio service, which began 2009 with about $1 billion in debt due in the year. It still faces tough problems such as reining in costs and shrinking growth in subscribers.

"These transactions resolve all of the uncertainty surrounding the company's and its subsidiaries' debt maturing in 2009," Mel Karmazin, chief executive of Sirius XM, said in a statement.  After-hours Sirius gained another 3% or .005 Cents, long live the Penny Stock swings.