Investing
Strong Demand Drives SIRIUS Cash Raising Efforts (SIRI)
Published:
Last Updated:
SIRIUS XM Radio Inc. (NASDAQ: SIRI) has raised more cash through its XM Satellite Radio Inc. unit than it originally projected. We were looking for a raise of some $350 million, but the newly priced offering was for a face value amount of $525,750,000.00. The reason is “strong investor demand.”
Again, these are ‘144A’ and ‘Reg. S’ exempted private placement securities, so they will not be on the open market. The notes carry an 11.25% interest rate and were sold at $95.093. So the gross proceeds are actually about $499.95+ million before fees, commissions, and expenses.
The funds from this offering will be used to pay down all amounts outstanding under its amended and restated credit agreement, to replace the $150 million second-lien credit agreement with Liberty Media Corporation (terminated upon this offering); and to refinance or repay other debt. Any balance remaining is available for “general corporate purposes.”
Shares of SIRIUS XM Radio are now up 12% at $0.44+ on very active trading volume.
Jon C. Ogg
June 25, 2009
Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.