SATWAVES

SIRI: A look At Sirius XM Radio’s Debt Refinancing (Part 2)

By Brandon Matthews (Please read part 1 first) In part 1, I hope to have conveyed some information on negative debt covenants, the capital structure of Sirius XM Radio (NASDAQ: SIRI) and highlighted its improved debt maturity schedule. The negative debt covenants written within the notes that will soon be retired are too numerous to discuss within a single report. However, there is another specific "negative covenant" that I would like to highlight. This one has to do with potential synergies...

SIRI: A look At Sirius XM Radio’s Debt Refinancing (Part 1)

By Brandon Matthews News of Sirius XM Radio's (NASDAQ: SIRI) debt refinancing on Friday has been met with widespread applause by even the company's harshest critics. The news that the company had moved $500 million of its 2013 debt obligations at a lower interest rate of 8 3/4% to 2015 was applauded by all. Late Friday, news followed that the company had increased its offering by $300 million to refinance a 2012 loan obligation, which carried an interest rate of only 2.56 %. This has led to s...

Sirius XM Radio’s Five Year Plan

By Brandon Matthews There have been a few statements recently in Satellite Radio circles that have peaked my interest. The first came during Sirius XM Radio's (Nasdaq:SIRI) fourth quarter earnings call held two weeks ago, in which Sirius XM CEO Mel Karmazin informed analysts that the used car market will be the new retail market going forward. Still another tidbit of information came again from Karmazin in a letter published last week, which includes a statement that there will be 90 milli...

Sirius XM Knocks Down Its 2013 Debt Tower

By Brandon Matthews As we recently speculated, Sirius XM Radio (NASDAQ: SIRI) announced today that it will call $500 million of its 9 5/8% notes due 2013. The company intends to offer $550 million of Senior Notes due 2015 and will use the net proceeds to redeem all of the Company's 9 5/8% Senior Notes due 2013. The interest rate is not yet known, but is expected to be lower given recent improvements to Sirius XM's credit ratings by Standard & Poor's and Moody's. This will have a positive ...

SIRI: Early March Auto Sales Indicate Big Increase To SAAR

By Brandon Matthews The anticipated recovery in the automotive sector may be underway. This is imperative for Sirius XM Radio (Nasdaq:SIRI), as worries over the projected Seasonally Adjusted Annual Rate (SAAR) halted an exceptional run last month over concerns of weakness in the sector. Most analyst projections assume a SAAR rate of between 10-11 million units. Edmunds.com is reporting that the first eight days of March have brought with it a surprising rise in the SAAR rate of U.S. auto s...