SIRIUS Satellite Radio Holdings (SIRI-NASDAQ) just received a $250 million term loan from Morgan Stanley. The facility will mature in five and a half years and have covenants substantially similar to those under the Company’s existing 9 5/8% Senior Notes. The proceeds will be used for general corporate purposes. Morgan Stanley is acting as the sole lead arranger and has committed to provide the entire principal amount of the facility, subject to customary closing conditions.
David Frear, EVP and CFO of SIRIUS: "This transaction takes advantage of favorable market conditions and significantly strengthens our balance sheet."
Shares were up 1% for a bit but are now close to flat in after-hours. At $2.85 per share, investors are mostly still underwater since the merger announcement date. This will give the company some extra working capital and a cushion, and now we know who at least one of the creditors will be if the company runs into trouble if the XM Satellite Radio (XMSR-NASDAQ) merger fails. XM has already sold some of the satellite node rights and access essentially as a space-REIT, but it’s always possible they’ll look at the terms and try to do a copycat financing.
Jon C. Ogg
June 5, 2007
Jon ogg can be reached at [email protected]; he does not own securities in the companies he covers.
Sponsored: Want to Retire Early? Start Here
Want retirement to come a few years earlier than you’d planned? Orare you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
