SIRI Intraday Thread: Monday, June 22, 2009

[JohnnyIrishXM]

This is i bleieve the short hedges due 2014 with lent shares that were pushed up 1 year with pay off earlier restrictions lifted.


9.75% Senior Supplemental Indenture
On March 6, 2009, XM executed and delivered a Third Supplemental Indenture (the “XM 9.75% Notes
Supplemental Indenture”), dated as of March 6, 2009, by and among XM, XM Holdings, XM Equipment Leasing
LLC, XM Radio Inc. and The Bank of New York Mellon, as trustee, which supplements the indenture, dated as of
May 1, 2006, among XM, XM Holdings, XM Equipment Leasing LLC and the trustee with respect to XM’s
9.75% Senior Notes due 2014 (the “9.75% Notes”).
F-56
SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The XM 9.75% Notes Supplemental Indenture was entered into in connection with XM’s previously
announced tender offer and consent solicitation with respect to the XM 9.75% Notes commenced on July 29,
2008. As part of the offer, XM sought and received the requisite consents from holders of the XM 9.75% Notes to
proposed amendments relating to the XM 9.75% Notes and the related indenture. The XM 9.75% Notes Supplemental
Indenture contains the proposed amendments which amend the indenture to eliminate substantially all of
the restrictive covenants contained in the indenture and theXM9.75% Notes, eliminate certain events of default and
modify or eliminate certain other provisions contained in the indenture and the XM 9.75% Notes.
Under the Indenture, dated as of July 31, 2008, amongXMEscrow LLC and The Bank of New York Mellon, as
trustee, relating to the 13% Senior Notes due 2014 (the “XM 13% Notes”), the maturity of the XM 13% Notes
changes from August 1, 2014 to August 1, 2013 when certain conditions have been satisfied. Following the
execution of the XM 9.75% Notes Supplemental Indenture, all of these conditions have been satisfied and the XM
13% Notes will mature on August 1, 2013.
F

[JohnnyIrishXM]

So we have paid $25mil already and $50mil is due end of this Quarter,so this new debt issue will pay off this loan now of $275mil and return $75 mil to coffers(COH),but really it frees up $350 mil they said they were going to pay with Cash on hand and only need to realize another $180mil to pay off 2013 lent shares hedge debt due 2013 also..JMHO...If this is their plan it is huge.

[trippingthespeculatingpos]

god i wish the flippers would go away, makes it hard to breakout when all they want is to buy in the .30's and sell in the .40's

[relmor2003]

So we have paid $25mil already and $50mil is due end of this Quarter,so this new debt issue will pay off this loan now of $275mil and return $75 mil to coffers(COH),but really it frees up $350 mil they said they were going to pay with Cash on hand and only need to realize another $180mil to pay off 2013 lent shares hedge debt due 2013 also..JMHO...If this is their plan it is huge.

Coming from you Irish, gives credibility to the chances. But I dont think they will. Use it all to pay back coming debt due. First. Cant wait to hear the interest rate. If its under 8%, the stock is going to explode.

[imromo24]

This is the restated Credit facilities from the annual report that todays debt issue will pay off with terms...

First-Lien Credit Agreement (as defined below).
Amendment and Restatement of Existing XM Bank Facilities. On March 6, 2009, XM amended and restated
(i) the $100,000 Credit Agreement, dated as of June 26, 2008, among XM,XMHoldings, the lenders named therein
and UBS AG, as administrative agent (the “UBS Term Loan”) and (ii) the $250,000 Credit Agreement, dated as of
May 5, 2006, among XM, XM Holdings, the lenders named therein and JPMorgan Chase Bank, N.A., as
administrative agent (the “JPM Revolver” and, together with the UBS Term Loan, the “Previous Facilities”).
The Previous Facilities have been combined as term loans into the Amended and Restated Credit Agreement, dated
as of March 6, 2009, among XM, XM Holdings, the lenders named therein and JPMorgan Chase Bank, N.A., as
administrative agent (the “First-Lien Credit Agreement”), and Liberty Media LLC (the “Purchaser”) has purchased
$100,000 aggregate principal amount of such loans from the lenders. XM paid a restructuring fee of 2% to the
existing lenders under the Previous Facilities.
Loans under the First-Lien Credit Agreement held by existing lenders (the “Tranche A” and the “Tranche B”
term loans) will mature on May 5, 2010 and the remaining loans purchased by Liberty (the “Tranche C” term loans)
will mature on May 5, 2011. The Tranche A and the Tranche B term loans are subject to scheduled quarterly
amortization payments of $25,000 starting on March 31, 2009. The Tranche C term loans are subject to a partial
amortization of $25,000 on March 31, 2010, with all remaining amounts due on the final maturity date. Pursuant to
these maturities and the scheduled amortization payments, of the outstanding principal amount, $100,000 of the
$350,000 is due in 2009; $175,000 is due in 2010; and $75,000 is due in 2011. The loans will bear interest at rates
ranging from prime plus 11% to LIBOR (subject to a 3% floor) plus 12%.
The loans under the First-Lien Credit Agreement are guaranteed by XM Holdings and each of the subsidiary
guarantors named therein. The loans are secured by a first lien on substantially all of the assets ofXMHoldings,XM
and certain subsidiaries named therein. The affirmative covenants, negative covenants and event of default
provisions contained in the First-Lien Credit Agreement are substantially similar to those contained in the Previous
Facilities, except that: (i)XMmust maintain cash reserves of $75 million (without taking into account any proceeds
from the Second-Lien Credit Agreement (as defined above)), (ii) we must maintain cash reserves of $35 million,
(iii) XM Holdings and XM must maintain certain EBITDA levels set forth therein and (iv) an event of default shall
occur upon the acceleration of any our material indebtedness or in the event of our voluntary or involuntary
bankruptcy

words words words, words words words, words words more words....

I agree it is positive to say the least because its a sooner than later move...thanks johny **fingers crossed**

[bassmaster]

Thank you Irish. Exactly what it was referring to from the language.

relmor, when any company issues bonds to pay off more expensive debt like sirius announced today, in most cases is it a positive signal they send to the market?

[sxminvestor]

http://www.politicallore.com/economy...asdaq-siri/964

This could happen soon and you want to be in on the news when it breaks.

[bassmaster]

oops, looks like you guys have all said postive.
can someone send some smoke signals to Homer, i think the site needs some opinions from him.

[Sirius Roadkill]

So we have paid $25mil already and $50mil is due end of this Quarter,so this new debt issue will pay off this loan now of $275mil and return $75 mil to coffers(COH),but really it frees up $350 mil they said they were going to pay with Cash on hand and only need to realize another $180mil to pay off 2013 lent shares hedge debt due 2013 also..JMHO...If this is their plan it is huge.

Agree. Finally, our financial house is being put in order . . .

[relmor2003]

relmor, when any company issues bonds to pay off more expensive debt like sirius announced today, in most cases is it a positive signal they send to the market?

To the trained eye yes. To the untrained eye, it could appear to be taking on MORE debt. Initial blurry eyed reaction from the retail investor was negative. As the news settles, we will get a more favorable response. Especially when the rate is announced and what debt specifically is being refied here.
Yes, the street sees any change to the existing debt structure a good thing, as companies dont add debt to remove debt at WORSE rates. Extending when it is due, is also a street positive move, as the street knows auto sales and retail market wont always be down. This helps them short term, and long term, if the payments on interest are lowered. Now you must also factor in how much interest would have been avoided by simply paying the payments when they were due. As Malone is not an idiot, either is Mel, Im sure they used their little calculators on this fact as well.