In a move to further improve their balance sheet, Sirius XM has announced a tender offer to purchase 3.25% convertible notes due in 2011. The company has been buying up the bonds on the open market recently and there are not that many (relatively speaking) left.
Likely this initiative was taken, and made sweet enough, to take out the remaining bonds by offering holders cash now rather than having them wait until October for the remaining interest payment. If successful, the company could have interest savings somewhere in the neighborhood of $1 million this year. The numbers certainly are not staggering, but the move is prudent and points to managements commitment to running a tight ship.
[via SiriusXM Release]
Position - Long Sirius XM Radio