By doing the share loaning agreement, it allows the buyers to hedge immediately -- thereby, they probably got a better coupon... we'll know soon enough.
It's interesting though, reading the news stories -- they're all wrong. For example...
Carl Gutierrez at Forbes says that Sirius did a stock offering and sale to raise $375 million... and they even got Frederick Moran at the Stanford Group to say that it was a great way "to give Sirius some financial flexibility"! Really Fred??? Did you read the press release?
Bob Holmes at the Street took the idiocy a step further to say that "Sirius will sell..." to raise the $375 million. Um Bob, no they're not.
Do any of these guys actually ever read the SEC filings any more? Or pick up the phone to call the companies to ask them what this means? These are the top 2 stories right now for BOTH companies... and the facts in them are DEAD WRONG!
Tyler... there's your new headline for the blog. Somebody should write up a commentary about the state of financial reporting -- or at least how blatantly wrong these stories are.
Make sure to email Carl and Bob links to it so they can see their screwups... Carl's email is: email@example.com and Bob's is: firstname.lastname@example.org