SiriusXM announced today that the company is seeking to refinance almost $600 million of 7.625% notes due in 2018. The new notes do not yet have an interest rate, but likely it will be about 6% with the debt due in 2020. Essentially this news points to the relative strength that SiriusXM has in the marketplace and to more smart business.
We will see a lower rate with the term extended slightly. On a cash flow basis, the monthly payment will be lower for the company. The bigger positive in this is that the company can likely get rid of certain restrictions that the current notes carry. It is no secret that SiriusXM has been wanting to establish a holding company but has had its hands tied by various restrictions relating to bonds. With better flexibility, the company will have more options as time moves on.
The news comes as SiriusXM tests yet another 52 week high, and is knocking on the door of $4.00 per share. The recent share price dynamics of SiriusXM are something that I have been covering closely on SiriusBuzz Premium. These almost daily insights allow active traders the ability to see the near term moves and give longer term traders insights as to the possible target prices for this equity. If you are invested in SiriusXM and want to keep your finger on the pulse of the company, consider giving SiriusBuzz Premium a try. Our service is timely and drama free. You want data and insight, not excuses. Look what Premium members saw prior to the market opening today:
“SiriusXM finally saw volume on an up day. With 55 million shares traded, we were above the average, and above the previous session. The great news in this is the establishing of a new support level forming strength in the $3.80?s. We now have a moderately strong support level at $3.84. The better news is that below that we have very strong support at $3.72. While it may be tempting to take $3.60 off of the table now, this new dynamic lacks the maturity to allow that. Given some more time, the risk factor of a dip to $3.60 diminishes.
At the moment, the immediate downside risk sits at $3.72 and the upside potential sits at $3.97. The great news is that even a dip down is actually strong and the overall trend is upward.
For the time being, watch the volume. We want to maintain the upward pressure on at least 50 million shares to help cement the building support in the $3.80?s. – charts follow
SiriusXM is executing very well on the fundamental front. The equity is very bullish on the technical front. That does not mean that there will not be trading opportunities. Arm yourself with regularly updated insight and information. Whether you are an active trader, or a long term investor that wants to keep up to speed with the share price moves, SiriusBuzz Premium may be just what you are looking for.