DONE!!! stock above .20 in pre market!!!
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DONE!!! stock above .20 in pre market!!!
The first phase includes a $280 million senior secured loan from Liberty
to SIRIUS XM, $250 million of which will be funded today. The proceeds
of that loan will be used by SIRIUS XM to repay $171.6 million of its
maturing 2 1/2% Convertible Notes due February 17, 2009, and the balance
will be used for general corporate purposes, including working capital
and transaction costs. The loan will bear interest at a rate of 15%,
mature in December 2012, and be secured by the assets securing SIRIUS
XM's existing term credit agreement.
-- The second phase provides an additional loan of $150 million to XM
Satellite Radio, SIRIUS XM's wholly owned subsidiary. Liberty has
also agreed to offer to purchase up to $100 million of the loans
outstanding under XM Satellite Radio's existing credit facilities
from the lenders.
Upon completion of the second phase of the Liberty investments, SIRIUS XM will issue Liberty an aggregate of 12.5 million shares of preferred stock convertible into 40% of the common stock of SIRIUS XM. In addition, Liberty will receive seats on the SIRIUS XM Board of Directors proportionate to its equity ownership. It is expected that John Malone and Greg Maffei will join the SIRIUS XM Board of Directors. Liberty's obligation to consummate the second phase of its investment is subject to various closing conditions.
Mel Karmazin, Chief Executive Officer of SIRIUS XM Radio, said, "We are pleased to have come to this agreement with Liberty Media, particularly in light of today's challenging credit markets. Liberty's investment is an important validation of what SIRIUS XM has already achieved and a vote of confidence in what we will achieve. This agreement enables Sirius XM to continue to develop the opportunities first outlined in the merger of Sirius and XM. By strengthening our capital structure and enhancing our financial flexibility, this investment allows us to continue providing the great content and innovative programming our subscribers know and love."
Anyone have any idea what this means as far as dilution of current shares outstanding?
well cnbc said 40% dilution.
Come on Tyler or Brandon....post something already so we don't have to look at that STUPID slacker promo anymore. Today is a day for Sirius dammit!!!!!