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  1. Demian is offline
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    Joined: Oct 2008 Posts: 2,320
    02-16-2009, 03:15 PM #31
    LiborTedSpread called my attention to this post that Homer had posted on the Yahoo board.....

    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)

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

    According to Homer's post, the $60 million MLB payment is not due until March. That would bring the amount needed down to $39 million - according to these figures. No specific due date is given for the Feb. NFL payment of $44 million. I'm curious about that. It would seem that they could at least buy more time by shuffling some things around...
    Last edited by Demian; 02-16-2009 at 03:19 PM.

  2. homer985 is offline
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    Joined: Mar 2008 Posts: 485
    02-16-2009, 04:22 PM #32
    Demian, the NFL payment in February was a suprise to me, as I didn't know about it. Given that there is 12 days left in February - with no specific date given -- they may have already paid it, or need to pay it rather soon. I suppose the NFL could give them a couple weeks, if it was because they worked out a new financing deal with a new investor -- and needed a couple weeks to shuffle funds around.

    Same goes for MLB -- I'm not sure of that due date, but I know that it set to coincide with Spring Training, which just got under way. XM pays that in March while the expense is amortized against earnings on a 12-month basis ($5MM/month), from March through February. I suppose that MLB could give them a couple weeks, if they needed it.

    Really, it would be best if MLB would allow XM to take the money out of escrow -- or minimally use the deposit for this and next years payments (instead of 2011 and 2012). That would be huge.


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    Last edited by homer985; 02-16-2009 at 04:24 PM.

  3. john is offline
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    Joined: May 2008 Posts: 2,836
    02-16-2009, 04:24 PM #33
    Also add in what is left of the 550 million earned in that quarter. Now while much if not all is used up for cost, how much would be used up before it gets to the MLB payment. That is why it is cash burn that is important not just what the payment is.

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