Sirius Doesn't Seem Headed for Restructure 45 comments
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In a new filing moments ago, Sirius XM (SIRI) has further reduced their Feb 09 debt obligation by another 6 million dollars. In my opinion, this is not something a company that plans to restructure would consistently be doing, and the spike at Monday's close may offer similar sentiment from the street.
Item 3.02 Unregistered Sales of Equity Securities:
We have agreed to issue an aggregate of 45,200,000 shares of our common stock, par value $0.001 per share, in exchange for $6,000,000 principal amount of our 2½% Convertible Notes due 2009 (the “2½% Notes”) beneficially owned by institutional holders. After giving effect to these exchanges, $187,588,000 aggregate principal amount of the 2½% Notes remain outstanding.
We will not receive any cash proceeds as a result of the exchange of our common stock for the 2½% Notes, which notes will be retired and canceled. We executed these transactions to reduce our debt and interest cost, increase our equity, and improve our balance sheet. We may engage in additional exchanges in respect of our outstanding indebtedness if and as favorable opportunities arise.
The issuance of the shares of our common stock will be made pursuant to the exemption from the registration requirements of the Securities Act of 1933, as amended, contained in Section 3(a)(9) of such Act.
[via Filing]
Disclosure: Long SIRI
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This article has 45 comments:
Yes, its still all very bullish. Ive been bullish since .11 cents and I havent changed my opinion.
IMHO, and it is simply that, I am very pleased with the SP holding its own here since the Annual Mtg. and dilution for equity so far. Maybe the worst is over. Some good news on the 4Q will help establish this bottom and getting investors taking another look.
Well I got to go..... the newest addition to the clan is calling for a bottle and a story before his, and my, afternoon nap........ There once was a Blue Dog.....
Our original Goal for 2009 was 1.05B!
Well, as it stands today we have:
$937,588,000
currently the breakdown is:
187,588,000 February
350,000,000 May
400,000,000 December
Of course there has been a price for this. I only have two positions in market because I am 5x as much into Sirius as I ever planned on going. (I closed my other positions to buy Sirius at .11xx)
So I do not feel too bad about situation today.
surprised to hear your comments on longer term. can you please elaborate a little more? i agree...siri not coming back to 2-3 dollars anytime soon. but you make is sound like pop to .25 or .30 on good q4 numbers or debt resolution is best case scenario. i'm much more bullish than that. current price level has nothing to do with performance and everything to do with risk of BK. assuming the debt issue was more manageable, this company would be a shining star in this environment...growing revenue, reducing costs, hitting numbers (for the most part), overcoming tremendous challenges, incredible potential etc. what do you think this company is worth if debt was not considered "life threatening"? Many companies carry enormous debt loads, but ideally they don't put the existence of the company (as we know it today) at risk like we have with siri. lets not forget that sometime this year siri begins generating positive cash flow. I guess I'm saying I'm bullish beyond a .10 or .20 pop here or there. my feeling is decent q4...reasonable debt strategy...and much closer to a buck by summertime....
Completely agree with your assessment. Too many people out there think this is just a means of Automobile entertainment. If they can get their marketing and advertising together this company will truly be amazing when the BIG 2......I'm not counting on Chrysler to survive at this point get their collective acts together.
Good Point! My 28 year old son & 21 year old Daughter don't have the service but are more than happy to tune in, once in my car. My son has borrowed my car for the last couple of days and is extremely please with the programming provided by Sirius.
Although my 16 year old still thinks that limewire is the way to go.
I guess we all get lazier as we gey older.
ONCE AGAIN
for the benefit of those that do not look at the 10k statements: After this year Sirius still has 2.261B in debt (strung out over 5 years). The Origin of the Debt is located next to the amount.
There's nothing in 2010!
3 1 / 4 % Convertible Notes due 2011 SIRI 230,000,000
Senior Secured Term Loan due 2012 SIRI 247,500,000
9 5 / 8 % Senior Notes due 2013 SIRI 500,000,000
and Finally in 2014!
13% Senior Notes due 2014 XM 778,500,000
Less: discount on 13% XM -76,328,000
9.75% Senior Notes due 2014 XM 5,260,000
7% Exch Sr Sub Notes due 2014 XM 550,000,000
leases XM 25,821,000
TOTALS 1,283,253,000
Long Sirius
Long term view....
China/India/etc.. are adapting to the modern business world. They are adapting at everything....Have you read the Time Machine by HG Wells. A must read....I think you will see who is the US and who is CHINA and whats going on in the world.
Our economy...
Try asking your neighbor to take "Smith Notes)'' Last name smith...
He tell you dont worry, everyone around town uses them....Its just toilet paper...When your neighbor gets to the store, they say, oooo, we dont think Steve can pay his bills in the furture, hes looking bad, losing his job, Im going to need something else for these groceries....
We are "Smith". The world is done with our toilet paper...Backed by literally nothing...Thats why the next leg down in the market will be global changing, nation changing, society changing...etc...
But more importantly, they dont need us anymore...Cause other than technology(hard to keep that from paying hands..) we have nothing to offer...
We cant make anything anymore, so we need foreign products, but foreign countries dont want dollars for products anymore...They can soon sell them to themselves or other markets, and not take a currency that is not handled responsibly(attached with debt).. Hes some debt notes China. But hey USA, we dont owe you any money!!!! US: O, wow ok...well too bad!!!na!!!!!
The dollar will lose value vs. other currencies, because last time I checked Europe wasnt running a trillion dollar deficit budget nor was China...The dollar had a run because when you sell stocks you need cash...When it invests out the dollar tanks...When the dollar goes back to work, its not going back to work in our stock market or in real estate...It will go into buying commoditites and commodity companies... Infrastructure...They will spend at home rather than hold our debt for us...We are 100 percent reliant on countries holding our debt, that CANT last for ever. Simple math...