Strong Demand Drives SIRIUS Cash Raising Efforts (SIRI)
SIRIUS XM Radio Inc. (NASDAQ: SIRI) has raised more cash through its XM Satellite Radio Inc. unit than it originally projected. We were looking for a raise of some $350 million, but the newly priced offering was for a face…
Again, these are ‘144A’ and ‘Reg. S’ exempted private placement securities, so they will not be on the open market. The notes carry an 11.25% interest rate and were sold at $95.093. So the gross proceeds are actually about $499.95+ million before fees, commissions, and expenses.
The funds from this offering will be used to pay down all amounts outstanding under its amended and restated credit agreement, to replace the $150 million second-lien credit agreement with Liberty Media Corporation (terminated upon this offering); and to refinance or repay other debt. Any balance remaining is available for “general corporate purposes.”
Shares of SIRIUS XM Radio are now up 12% at $0.44+ on very active trading volume.
Jon C. Ogg
June 25, 2009
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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
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A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.