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  1. imromo24 is offline
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    Joined: Aug 2008 Location: Steeler Town, MI Posts: 2,524
    03-22-2009, 10:41 AM #11
    Here I sit Broken Hearted
    Should have bought at .05 but my money sharted
    now I contiplate .32
    have the money what should I do...

    I started a thread to stand up and shout
    An RS above my average wipes me out?
    But someone started another thread
    that got the attention of the sirius buzz's head
    now the topic is about why and when
    rather than how to spend.

    please go here and tell me how
    you'll make money on this cash cow
    http://siriusbuzz.com/forum/showthread.php?t=1661

  2. mydogniles is offline
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    Joined: Mar 2009 Location: Burlington, CT Posts: 24
    03-22-2009, 11:04 AM #12
    I read the deal and this is my take

    1st payment 280 million--30 million right back as a fee and 15% interest

    2nd part--150 million loan at 15% and purchase of 100 million of debt from market Plus 12.5 million perferred convertable into 40% of SIRI common

    However, Mel has till May, 17 2009 to repay the second 250 million with a 7 million termination fee

    Mel just resistered a 1 billion shelf of SIRI common to sell on the open market

    If he gets 30 cents or higher he will get 300 million or more

    Enough to pay Malone 250 million and 7 million fee. This would also remove 250 million of debt at 15% interest

    We would incur a 1 billion dilution equaling a 17% dilution

    But Remove a 40% dilution and 250 million at 15% debt and put 50 or more million into free cash flow pot

    Actually quite brilliant, I hope and think this is Mels plan.

    Don't forget although Malone bailed us out, he used loan shark methods such as the Mafia would.

    If Mel can pull this off now, I think everbody will agree he is a genius.
    w this post over on the yahoo board. sounded very interesting to me, although i can't see mel stiffing malone at this point. but it does make some sense.

    thoughts?

  3. mydogniles is offline
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    Joined: Mar 2009 Location: Burlington, CT Posts: 24
    03-22-2009, 11:06 AM #13
    this was not my comment. i pulled this from the yahoo board and thought it was interesting. when i cut and paste it into the my reply, my initial comments were removed. just don't want anyone pissed that I'm copying...

  4. relmor2003 is offline
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    Joined: Oct 2008 Posts: 1,937
    03-22-2009, 11:20 AM #14
    Quote Originally Posted by mydogniles View Post
    this was not my comment. i pulled this from the yahoo board and thought it was interesting. when i cut and paste it into the my reply, my initial comments were removed. just don't want anyone pissed that I'm copying...
    F*** Malone. Hes an a**h**e. His loan proved hes no"good guy". He shotgun barreled financed Sirius liek the banks did to get the merger deal. No, this isnt going to happen. If they sell shares, it will be to simply add to their COH, and maybe pay off remaining debt for this year, lauch sats(next 2 are coming), and strengthen cash position for long term. In the future if they grow their COH, they may start paying back debt. No too much time, and effort has gone into the Malone deal, its real, its here, and its not going anywhere. If he used Malone simply to get the stock price off the ground, so he could sell shares higher, and throw off Malone it would go against everything Mel believes in, as it would be smart, clever, and a good deal for stockholders. None of these things has Mel ever portrayed as characterisitcs or goals of his. So basically I like it, its just goes against everything Mel has show in the past. Plus, based on information we dont have(future synergies with DirectTV, packaging , and future capital investments) this might be as far away from Mels true plans as humanely possible. If Mel feels Malone is simply jerking him around, or trying to take over the company sooner than later, by forcing the company to make bad decisions, then yes, he might try that.
    Last edited by relmor2003; 03-22-2009 at 11:23 AM.

  5. mydogniles is offline
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    Joined: Mar 2009 Location: Burlington, CT Posts: 24
    03-22-2009, 11:41 AM #15
    i agree. actually in my comments that got wiped out i stated that it seemed unlikely mel would pull a move like this. not from a creativity standpoint, but more from a partnership long term. this company has a long way to go before debt is off the books and it doesn't hurt to have a partner.

    thanks for your reply relmor...

  6. homer985 is offline
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    Joined: Mar 2008 Posts: 485
    03-22-2009, 12:45 PM #16
    It's too late... whoever wrote that didn't read the agreement very closely -- and I'm talking about the FULL agreement attached to one of Sirius' recent filings.

    The agreement mentioning "May 17th" was for if they hadn't completed the 2nd phase by then... but now that the 2nd phase is completed - the two are married. They cannot and will not undo it at this point.


    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

    EDIT: Looking through the agreement, there is no "May 17" deadline given to repay the $250MM XM loan. How and where that date came from, I don't know -- but it doesn't exist. I think they may have been thinking about the May expiration of the facilities -- however, those are now extended.

    There was an April 15th non-solicit provision, which stated Sirius couldn't "shop around" for a better deal until April 15th... but the date is irrelavent now. The agreement makes it pretty clear that the termination of the agreement was only available to Sirius until the 2nd phase closed. The agreement stated that Sirius couldn't look for a better deal until after April 15 - but if one came along, they could terminate for a $7MM fee; after April 15th they could then shop around and also pay the termination fee. But this is irrelevant now because Phase 2 already closed. The point is moot.



    "The Company agrees that until the earlier of the Closing Date and April 15, 2009 (the “Non-Solicitation Period”): (i) it and its executive officers and directors shall not, (ii) its Subsidiaries and its Subsidiaries’ executive officers and directors shall not, and (iii) it shall use reasonable best efforts to ensure that its and its Subsidiaries’ agents and representatives shall not, (A) directly or indirectly, initiate, solicit or knowingly encourage or facilitate any inquiries or the making of any proposal or offer with respect to (x) a tender offer or exchange offer or proposal for a merger, consolidation or other business combination involving the Company and its Subsidiaries, or an investment in Equity Securities representing 10% or more of the outstanding Equity Securities of the Company or (y) any proposal or offer to Refinance, or to raise funds to be available to Refinance, all or any substantial portion of the outstanding indebtedness of XM Opco and/or , XM Satellite Radio Holdings..."



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    Last edited by homer985; 03-22-2009 at 01:27 PM.

  7. relmor2003 is offline
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    Joined: Oct 2008 Posts: 1,937
    03-22-2009, 04:44 PM #17
    Quote Originally Posted by homer985 View Post
    It's too late... whoever wrote that didn't read the agreement very closely -- and I'm talking about the FULL agreement attached to one of Sirius' recent filings.

    The agreement mentioning "May 17th" was for if they hadn't completed the 2nd phase by then... but now that the 2nd phase is completed - the two are married. They cannot and will not undo it at this point.


    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

    EDIT: Looking through the agreement, there is no "May 17" deadline given to repay the $250MM XM loan. How and where that date came from, I don't know -- but it doesn't exist. I think they may have been thinking about the May expiration of the facilities -- however, those are now extended.

    There was an April 15th non-solicit provision, which stated Sirius couldn't "shop around" for a better deal until April 15th... but the date is irrelavent now. The agreement makes it pretty clear that the termination of the agreement was only available to Sirius until the 2nd phase closed. The agreement stated that Sirius couldn't look for a better deal until after April 15 - but if one came along, they could terminate for a $7MM fee; after April 15th they could then shop around and also pay the termination fee. But this is irrelevant now because Phase 2 already closed. The point is moot.



    "The Company agrees that until the earlier of the Closing Date and April 15, 2009 (the “Non-Solicitation Period”): (i) it and its executive officers and directors shall not, (ii) its Subsidiaries and its Subsidiaries’ executive officers and directors shall not, and (iii) it shall use reasonable best efforts to ensure that its and its Subsidiaries’ agents and representatives shall not, (A) directly or indirectly, initiate, solicit or knowingly encourage or facilitate any inquiries or the making of any proposal or offer with respect to (x) a tender offer or exchange offer or proposal for a merger, consolidation or other business combination involving the Company and its Subsidiaries, or an investment in Equity Securities representing 10% or more of the outstanding Equity Securities of the Company or (y) any proposal or offer to Refinance, or to raise funds to be available to Refinance, all or any substantial portion of the outstanding indebtedness of XM Opco and/or , XM Satellite Radio Holdings..."



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    There you go. Its irrelevant to even dicuss. Its not even possible, nor was it going to happen in any condition. There may be legal steps SiriusXM could take, but that would never happen.

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