Page 1 of 4 123 ... LastLast
Results 1 to 10 of 33

Thread: Sirius/XM debt indenture agreements regarding cash on hand...

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

    Sirius/XM debt indenture agreements regarding cash on hand...

    LiborTedSpread called my attention to this post that Homer had posted on the Yahoo board.....

    >>>What happened to the $350 M Siri had in the bank.???? Enough to cover the Feb. dept.

    http://messages.finance.yahoo.com/Bu...91&mid=4032954

    Start with $360 million...
    + Add in FCF from Q4 of about $50 million;
    - Now remove $180 million minimum balance needed, per their various indenture agreements;
    - Now remove $175 million to repay the February debt;
    - Now remove $44 million owed to the NFL in February;
    - Now remove $60 million owed to MLB in March;
    - Now remove $50 million for accounts payable

    = ($99 million)

    -------------------------------------------------------------------------------

    Why doesn't Homer post his stuff here first? Anyway, according to Homer's post on the Yahoo board, the indenture agreements require an $180 million balance of cash on hand. Libor was asking me how this can this be verified and to what debt. Knowing what debt this is applied to is very important to know. I have also heard figures lower than the $180 million number thrown about. Also, what are the ramifications of breaking an indenture agreement like this? I have also never been able to verify if there is a 30 day extension available on the Feb. debt or not. I have heard that thrown about too. Looking for clarity and facts..... Can anyone help? Homer.......where are you?

  2. #2
    trippingthespeculatingpos is offline
    Guru
    trippingthespeculatingpos's Avatar
    Joined: Dec 2008 Location: San Antonio Posts: 2,884
    thats assuming siri only made 50 mil in the 4th quarter, but with all the synergies and everything else couldnt it be more than 50 mil?

  3. #3
    jmm232 is offline
    Banned
    jmm232's Avatar
    Joined: Apr 2008 Posts: 206
    Absolutely. At the shareholder meeting in December, didn't Mel state losses for 2008 would be 100M less? Shouldn't that be a $100M+ quarter?

  4. #4
    homer985 is offline
    Senior Member
    homer985's Avatar
    Joined: Mar 2008 Posts: 485
    Losses and FCF are not the same thing. The $100 million improvement could all be non-cash related. That would do no help to increase cashflow.

    Yes, my $50 million in FCF for the quarter is conservative -- but there were a number of contracts bought out at the end of the year that could have a negative effect on FCF. Plus, with a lot fewer gross additions (bad economy), that too would have a negative effect on FCF. My $50 million estimate (really a guesstimate... not really based on much else), was due to the benefits of the synergies.

    But even if you doubled it... it doesn't help Sirius out with working capital much for the quarter here. One of the items I left off the list above was CAPEX, which I read could be a factor this quarter too.

    There is just too much happening too soon to this little company. If these expenses were more spread out, perhaps they'd be okay... but for now, they need a cash infusion to get around this Feb09 debt -- then they can focus on the Dec09 maturities.



    ---------

  5. #5
    Hughes is offline
    Enthusiast
    Hughes's Avatar
    Joined: Mar 2008 Posts: 168
    Quote Originally Posted by homer985 View Post
    Losses and FCF are not the same thing. The $100 million improvement could all be non-cash related. That would do no help to increase cashflow.

    Yes, my $50 million in FCF for the quarter is conservative -- but there were a number of contracts bought out at the end of the year that could have a negative effect on FCF. Plus, with a lot fewer gross additions (bad economy), that too would have a negative effect on FCF. My $50 million estimate (really a guesstimate... not really based on much else), was due to the benefits of the synergies.

    But even if you doubled it... it doesn't help Sirius out with working capital much for the quarter here. One of the items I left off the list above was CAPEX, which I read could be a factor this quarter too.

    There is just too much happening too soon to this little company. If these expenses were more spread out, perhaps they'd be okay... but for now, they need a cash infusion to get around this Feb09 debt -- then they can focus on the Dec09 maturities.



    ---------
    homer,

    How likely do you think it is that all current shareholders get left with nothing? Looking all this over, it seems like there's a 99% chance we'll be left with nothing. I know I'm being negative, but I think I'm finally facing reality.

  6. #6
    LIBOR/TED SPREAD is offline
    Member
    LIBOR/TED SPREAD's Avatar
    Joined: Dec 2008 Posts: 65
    Now remove $180 million minimum balance needed, per their various indenture agreements;

    Homer,

    Please post link to varify accuracy of this $180M minimum balance and of what debt is this tied too. This is the first I have seen of this, if true why wouldn't this have been discussed before? I am shocked if this is true.

  7. #7
    Sirius Roadkill is offline
    Mentor
    Sirius Roadkill's Avatar
    Joined: Feb 2009 Posts: 1,882
    from crain's:

    "For the fourth quarter, Sirius expects to post an adjusted profit of $32 million, a vast improvement over the $224 million loss it recorded in the year-ago period.

    For 2009, Sirius reaffirmed its expectation for adjusted profit of $300 million. But its number of subscribers is forecast to rise to just 20.6 million below the 21.5 million that Sirius forecast in September, before the Detroit automakers asked Congress for emergency loans.

    Analysts polled by Thomson Reuters are forecasting a 2009 loss of 15 cents per share.

    Sirius also reaffirmed revenue forecasts of $2.4 billion this year and $2.7 billion in 2009. Analysts' expectations are more cautious for this year, forecasting $2.2 billion in revenue, but are in line with management's prospects for 2009."

  8. #8
    Hopeful is offline
    Addict
    Hopeful's Avatar
    Joined: Nov 2008 Location: Vancouver Island Canada Posts: 583
    Quote Originally Posted by Sirius Roadkill View Post
    from crain's:

    "For the fourth quarter, Sirius expects to post an adjusted profit of $32 million, a vast improvement over the $224 million loss it recorded in the year-ago period.

    For 2009, Sirius reaffirmed its expectation for adjusted profit of $300 million. But its number of subscribers is forecast to rise to just 20.6 million below the 21.5 million that Sirius forecast in September, before the Detroit automakers asked Congress for emergency loans.

    Analysts polled by Thomson Reuters are forecasting a 2009 loss of 15 cents per share.

    Sirius also reaffirmed revenue forecasts of $2.4 billion this year and $2.7 billion in 2009. Analysts' expectations are more cautious for this year, forecasting $2.2 billion in revenue, but are in line with management's prospects for 2009."

    This seems like a random positive report??? When was it published? Why are they not talking about BK???

  9. #9
    Sirius Roadkill is offline
    Mentor
    Sirius Roadkill's Avatar
    Joined: Feb 2009 Posts: 1,882
    sorry Hopeful . . . it's an old report, 12/18/08 . . . my only intent on posting it was to aid the discussion above on Q4 earnings projections . . . which at $32 million were even lower than homer985's conservative $50 million and lower than the $40 million assumption I baked-into my analysis as posted under the Brandon/Newman XM bankruptcy article (click "older comments')

    sorry for any confusion.

  10. #10
    Hopeful is offline
    Addict
    Hopeful's Avatar
    Joined: Nov 2008 Location: Vancouver Island Canada Posts: 583
    no worries,

  11. Ad Fairy Senior Member
Page 1 of 4 123 ... 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
  •