I'm interested in people's take on the current stock price and what might happen after the CC. Do you think a "negative CC" is already factored into the current price or not?
SIRIUS XM SATELLITE RADIO FORUM
I'm interested in people's take on the current stock price and what might happen after the CC. Do you think a "negative CC" is already factored into the current price or not?
All,
The stock price is not gaining any momentum because BK is NOT out of the question right now.
http://www.reuters.com/article/marke...0090226?rpc=33
Feb 17 - Standard & Poor's Ratings Services today placed its 'CCC' corporate credit rating for Sirius XM Radio Inc. (SIRI.O) and XM Satellite Radio Holdings Inc. (which we analyze on a consolidated basis), as well as all issue-level ratings for the company, on CreditWatch with positive implications. The action is based on the recent announcement that Liberty Media Corp. (BB+/Watch Neg/--) will make a $530 million investment in Sirius and its subsidiaries in the form of a loan and an equity interest.
Liberty has initially agreed to provide a $280 million 15% senior secured loan due December 2012 ($250 million which will be funded today), to repay Sirius' $171.6 million 2.5% convertible notes due Feb. 17, 2009, and to provide funds for general corporate purposes. Liberty has agreed to provide an additional loan of $150 million to XM Satellite Radio and to purchase up to $100 million of the loans under XM Satellite Radio's existing credit facilities from the lenders. Sirius still faces significant debt maturities in 2009, with $350 million of XM bank debt maturing May 2009 and $227.5 million of XM 10% convertible senior notes due December 2009.
In addition, Standard & Poor's believes the company may encounter significant obstacles in meeting its 2009 financial targets of $300 million of EBITDA and modestly positive free cash flow, considering the sharp decline in U.S. auto sales and the weak retail consumer electronics market, which we believe are likely to slow subscriber growth.
"For the Sirius rating to be raised, the company will need to demonstrate progress toward achieving sustainable profitability and positive discretionary cash flow, and address its sizable remaining 2009 maturities," said Standard & Poor's credit analyst Hal Diamond.
"We currently believe that the likely extent of a potential upgrade of the corporate credit rating would be limited to one notch, to 'CCC+'. An upgrade from the 'CCC' category would entail progress addressing maturities and operating cash requirements beyond 2009." (New York Ratings Team)
is nice to see the possibility of a raise in vredit rating but here is the corrected article noting the raised rating in the headline. Originally they headlined it as a cut in rating. Poor Sirius can't catch a break.....
http://www.reuters.com/article/marke...0090226?rpc=44
Sorry, Doobz but I disagree. If John Malone isn't a moron, investing 500 mil in a company about to file Chapter 11, then I'd say it is out of the question for a while, at least and likely for good. Am I missing something, anyone?
Originally Posted by doobz26
It should be out of the question though...
Even if Sirius does not secure a better deal and Phase 2 of the deal with Liberty goes through, they will be able to manage what is left pretty easily - especially when considering SIRI's cash on hand and that the May bank debt will more than likely be extended...
Here is a breakdown of the remaining '09 debt, which is mostly XM's. Sirius only owes $1.74 million more this year. With XM being a subsidiary of Sirius, how could Sirius go BK anyway? Anyway....I would argue that with the May bank debt more than likely being extended and some of the rest of the Dec. bonds possibly being extended, SIRI could have enough cash on hand to say **** off to Malone and the dilution that the preferred share issuance would bring. Again, even if phase 2 of the Liberty deal goes through, the stock should not be trading at BK levels......because they are not going BK!
SIRIUS '09 DEBT
8 3/4% Convertible Subordinated Notes due 9/29/2009 ($1.74 million outstanding)
SIRI.GA / CUSIP: 125127AJ9
http://cxa.marketwatch.com/finra/Bon...D=MTI1MTI3QUo5
XM '09 Debt
Senior Secured Term Loan due 5/5/2009 ($100 million outstanding)
...BANK LOAN...
Senior Secured Revolving Credit Facility due 5/5/2009 ($250 million outstanding)
...BANK LOAN...
10% Convertible Senior Notes due 12/1/2009 ($227.5 million outstanding)
XMRD.GI / CUSIP: 983759AC5
http://cxa.marketwatch.com/finra/Bon...D=OTgzNzU5QUM1
10% Senior Secured Discount Convertible Notes due 12/31/2009 ($33.2 million outstanding)
...PRIVATELY HELD BY HONDA MOTORS OF AMERICA...
TOTAL: $612.44 million remaining '09 debt due
Last edited by Demian; 02-26-2009 at 02:03 PM.
the street still considers it a possibility, untill all 2009 debt is pushed back, they will do the same bk scare in may and the same in dec if they dont announce refinancing or a debt for equity swap or something, i think that may be why this cc is taking so long, maybe mel is working on some of the debt and once to try and meet that march 1st deadline.
agreed. If there is positive news but the debt is not addressed...we'll be right back where we are sitting now.
I know some of you don't want me here but I am still interested in SIRI stocks. When is the last day that SIRI has to have their 4Q meeting? I did not by SIRI shares last friday instead I bought 148,500 share of FITB at $1.01 as just like SIRI the banks are not going BK. I just sold out FITB today when the market topped out at $2.70. SIRI I do not believe will go BK but I do think someone will buy them up like echo star. The liberty thin is all smoke and mirrors so SIRI can ge financing from some where else. Why would they pay 15% interest when you know a bank will do 10 or 12%. So when is the last day SIRI can have 4Q meeting as that's when they'll have it.
CLady,
Can you post your trade receipt, here, on the chat board?
I think it might help to add to a sense of credibility to your claim.
I'm not believing or disbelieving you. It's only that your call to purchase that
many shares at what I'm seeing as at least a 10 Year Low
for FITB, @ $1.01, is a bit suspect, without proof.
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