Page 1 of 3 123 LastLast
Results 1 to 10 of 24

Thread: SIRI files new 8K - 100M shares traded for 13M in debt...

  1. #1
    Demian is offline
    Mentor
    Demian's Avatar
    Joined: Oct 2008 Posts: 2,320

    SIRI files new 8K - 100M shares traded for 13M in debt...

    SIRI files new 8K - 100M shares traded for 13M in debt...

    http://secfilings.nasdaq.com/filingF...14%2F2009&pdf=

    Item 3.02 Unregistered Sales of Equity Securities.

    We have agreed to issue an aggregate of 100,000,000 shares of our common stock, par value $0.001 per share, in exchange for $13,000,000 principal amount of our 2½% Convertible Notes due 2009 (the “2½% Notes”) beneficially owned by institutional holders. After giving effect to these exchanges, $174,588,000 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 cancelled. 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.

  2. #2
    trippingthespeculatingpos is offline
    Guru
    trippingthespeculatingpos's Avatar
    Joined: Dec 2008 Location: San Antonio Posts: 2,884
    i dont see how there gonna get to a billion like this by march

  3. #3
    xitvp is offline
    Enthusiast
    xitvp's Avatar
    Joined: Nov 2008 Posts: 210

    Talking

    Correct me if I'm worng, but I am assuming the goal of doing this is to reduce the debt to the point where creditors may offer better financing terms.

    I may be totally wrong.....

  4. #4
    Demian is offline
    Mentor
    Demian's Avatar
    Joined: Oct 2008 Posts: 2,320
    Well, it's reduced down enough now where they could easily pay off the remaining Feb. debt in cash without any financing. What was once 300M due this Feb. is now only $174,588,000....

  5. #5
    Mario is offline
    Member
    Mario's Avatar
    Joined: Aug 2007 Posts: 39
    Nortel filed bk today, even though they had a large amount of cash and could have made debt payments for at least another year, probably more. They filed because they wanted to conserve that cash while renegotiating with creditors.

    I did not have money on the line, but I did not expect them to do this.

    I am starting to worry that Sirius might decide to do something to this effect. I know I have, and we have said before that, why would Sirius file bk now when they have enough cash on hand to at least make the Feb debt payment...

    We, in this economy, anything is possible.

    I have been waiting to average down, and may wait until March, just to see exactly what is going to happen.

    The thing that really worries me is at this point and at this price, even if they max out their stock issuance to 8 billion shares, they will still not be able to raise enough cash to last the rest of the year.

  6. #6
    trippingthespeculatingpos is offline
    Guru
    trippingthespeculatingpos's Avatar
    Joined: Dec 2008 Location: San Antonio Posts: 2,884
    didnt they said they would have all of 2009's debt taken care of by march?

  7. #7
    AmenhotepIII is offline
    Member
    AmenhotepIII's Avatar
    Joined: Nov 2008 Location: San Diego, CA Posts: 83

    when announcement is released...

    Hello All,

    I was wondering if someone might give their thoughts on why Sirius always seems to wait till market closes to file such items? Is that just Standard Operating procedure on Wall St.? Or is it possibly an attempt to minimize the knee jerk reaction up or down?

    Just curious...

  8. #8
    john is offline
    Guru
    john's Avatar
    Joined: May 2008 Posts: 2,836
    Mario, just an opinion here, I would think the people involved in the buying of these shares are getting some kind of assurance that SIRIXM will not file for bankruptcy protection just a few months after they buy these shares.

    Also I believe that after looking at the past 3 years of both companies 4th Q FCF, that the proforma 4th Q FCF will give SIRIXM more then enough cash just from that to pay off the rest of Feb debt.
    Last edited by john; 01-14-2009 at 06:43 PM.

  9. #9
    Mario is offline
    Member
    Mario's Avatar
    Joined: Aug 2007 Posts: 39
    I too originally believed that the new people swapping their debt for stock would be getting some assurances, but there is no way of knowing exactly... and given the very nature of common shares in any company, there ultimately is no explicit assurance, either verbal and certainly not written, that the company will and can not file for bankruptcy in the future.

    As for the fcf, it's not the feb debt that concerns me, but the other debt obligations for 2009. A further concern is that even if they pay off the feb debt, they can still file bk later on.

    I don't want to sound like to troll chanting bankruptcy, but I am starting to realize that it is certainly possible. In the coming weeks there will be a lot of companies going bk, and unless SXM announces something soon concerning the feb debt, the stock will fall even more than it has, and it will only become more difficult to swap stock for debt.

    Example, at 8 cents, SXM could issue another 4.5 billion shares and only come up with $360 million... not nearly enough to pay off the debt coming due in 2009. This is going to be areally long year from sirius and the stock will not rebound any time soon. Once the feb debt is out of the way, we will be sacked by the street for the other debt payments.

  10. #10
    howzzat is offline
    Junior Member
    howzzat's Avatar
    Joined: Nov 2008 Posts: 14
    Trippin,

    They did say that they would get rid of all 2009 debt by March. But then that doesn't mean anything...Mel says a lot of stuff but does not deliver.

  11. Ad Fairy Senior Member
Page 1 of 3 123 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •