SIRIUS XM Radio Inc. (NASDAQ: SIRI) has announced this morning that its XM Satellite Radio Inc. wholly owned indirect subsidiary is offering $350 million in principal amount of Senior Secured Notes. What is interesting is the reception Sirius XM shares are getting.
The net proceeds from the offering will be used to repay all amounts outstanding under its amended and restated credit agreement, and the balance will be used for general corporate purposes.
The notes are due in 2013 and are sold only to qualified institutional buyers under Rule 144A. These are also available outside the United States in compliance with Regulation S under the Securities Act. These securities have not been registered with the SEC nor with any state securities laws. They may not be offered or sold in the United States absent registration, except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.
The good old “Reg. S” offerings…. Those have not been too frequent since the 1990’s. Shares are actually trading up about 10% at $0.38 before the open this morning. This is a week ahead of the Russell Index reconstitution and rebalancing act next Monday where SIRIUS XM is being booted from the appropriate indexes.
The balance sheet may have changed due to other financings, but as of March 31, 2009 the total combined SIRIUS & XM liabilities are listed as $7.24 billion, with $2.34 billion being short-term current liabilities.
Jon C. Ogg
June 22, 2009
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.