If we assume that Malone is going to get just under half the company's equity, then we can deduce that the new float will be about 7 billion shares. So, with the threat of BK removed... what's it worth? I recall around merger time that the combined companies were going to have a market cap of about 8 billion bucks... that would equate to a current share price of $1.14. Wouldn't that be nice.
http://online.wsj.com/article/SB1234...oo_hs&ru=yahoo
Karmazin's Miscalculation
Decision to Hold Off on Refinancing Debt Left Sirius XM in Vulnerable Position
FEBRUARY 17, 2009
Mel Karmazin has faced numerous struggles as the head of Sirius XM Radio Inc., but it was one badly timed move last year that ultimately left his company exposed.
Late Monday, it appeared that John Malone's Liberty Media Inc. was close to taking a large stake in Sirius XM, an investment that would delay for now the day of reckoning over the company's debt.
Sirius representatives declined to comment. The more than $3 billion Sirius has coming due over the years, and in particular the $175 million maturing Tuesday, has led to Sirius's vulnerability to investors looking to tap into ...
That would make sense, but with the atrocious car market, retail environment, not sure it could be priced that high right now. Never know what short covering and momentum can bring, but doubt it.Originally Posted by winagain35
IMHO I do not think that the dilution will get to 7B with Malones deal. More likely to 5.5B-6B. Which will significantly raise SP! Gut feeling! Also, neither siri nor XM ever traded logically. Almost always way above actual value if it could be calculated.
I would think Malone would take shares @.25 - .30
http://www.nypost.com/seven/02172009..._fl_155575.htm
are good friend peter lauria burning the midnight oil
John Malone's Liberty Media is expected to announce today a deal to provide a senior secured loan of between $250 million and $300 million to Sirius XM, The Post has learned.
The loan is part of a two-step process that will save the insolvent satellite-radio operator from filing for bankruptcy. It will also provide Sirius XM with enough cash to repay the $175 million in debt held by EchoStar CEO Charlie Ergen that matures today.
Talks between Sirius XM and Liberty, which owns the nation's largest satellite-television provider, DirecTV, were still ongoing as of late last night, and sources cautioned that either side could walk away from the deal at the last minute.
Representatives for Sirius XM and Liberty did not return calls seeking comment.
Liberty is receiving financial advice from UBS and legal advice from Baker Botts. Sirius XM is receiving financial advice from JPMorgan and Evercore Partners, and legal advice from Simpson Thacher & Bartlett.
A source close to the deal said the secured loan is being made without either equity or conditions. But future stages of Malone's investment will feature conditions that Sirius XM must meet in exchange for Liberty obtaining a sizable minority stake in the company.
"Liberty's offer is being made in partnership with and in support of Sirius XM management," the source said, noting that Sirius XM CEO Mel Karmazin will maintain operating control of the company under Liberty's proposal.
Ergen had offered to inject Sirius XM with cash, and restructure the remaining debt he holds, in return for control.
The source said Liberty has already come up with a plan for restructuring Sirius XM's roughly $600 million in remaining debt, which matures in May and in December.
Liberty will detail how it plans to "accommodate for that resolution" in today's announcement, the source said, but added that future stages of the company's proposal are contingent on Sirius XM meeting the conditions spelled out by Liberty.
Ergen also holds some of Sirius XM's remaining debt, but it is junior to Liberty's loan and that of other lenders.
Not unlike the debt exchange Sirius XM announced last week, the source said Liberty's refinancing proposal is likely to include a premium in the form of higher interest rates to all bondholders, including Ergen.
"A source close to the deal said the secured loan is being made without either equity or conditions. But future stages of Malone's investment will feature conditions that Sirius XM must meet in exchange for Liberty obtaining a sizable minority stake in the company."
without equity or conditions? still worried about dilution? i wonder what the future condition's will be? all in all good news, should be official pretty early today i believe.
Sleep well you little devil's bwahahahahahahaha money to be made tommorow
DAMN it Tripp!!! Get some sleep LOL!!!
Thanks for the post LOL!!!!
Now go to bed!!!!
im not gonna get much sleep ive already faced that fact lol
I take it this is what you guys were working on earlier?
http://www.thestreet.com/cramerstake/SIRI.html
It will be a cold day in hell before I give this clown any money!!!
Have a good one Tripp and thanks again for your efforts!! And keeping us up to date!!
I am going to hit the sack.
Good Morning People.........
Sirius XM Radio Inc. (SIRI) Pre-Market Trading
Pre-Market
Last: $ .15
Pre-Market
High: $ .20
Pre-Market
Volume: 207,600
Pre-Market
Low: $ .13
Pre-Market
Time (ET) Pre-Market
Price Pre-Market
Share Volume
07:09 $ .15 1,000
07:09 $ .15 10,000
07:09 $ .15 10,000
07:08 $ .16 10,000
07:08 $ .15 2,000
07:08 $ .15 6,000
07:08 $ .15 4,000
07:07 $ .17 4,200
07:07 $ .17 3,800
07:07 $ .17 6,200
07:07 $ .16 3,001
07:07 $ .16 10,000
07:07 $ .16 10,000
07:07 $ .15 8,000
07:06 $ .17 7,000
07:06 $ .17 3,000
07:06 $ .16 1,000
07:06 $ .17 4,999
07:06 $ .17 3,000
07:06 $ .17 2,001
07:06 $ .16 5,999
07:06 $ .17 800
07:06 $ .17 3,000
07:06 $ .17 5,000
07:05 $ .17 8,000
07:05 $ .17 1,000
07:05 $ .17 1,000
07:03 $ .20 14,700
07:03 $ .17 10,000
07:01 $ .16 100
07:01 $ .13 600
07:01 $ .20 10,000
07:01 $ .20 1,800
07:01 $ .20 1,000
07:01 $ .20 1,000
07:01 $ .20 1,000
07:01 $ .20 1,000
07:01 $ .20 1,000
07:01 $ .20 1,000
07:00 $ .1488 100
07:00 $ .15 1,000
07:00 $ .165 10,000
07:00 $ .20 10,000
07:00 $ .20 2,500
07:00 $ .20 5,000
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