Sirius XM Radio Inc. (SIRI) has issued over 100 million shares of common stock to pay down debt and reduce interest costs, the company disclosed today in a SEC filing.Additionally, the company revealed that its Chief Accounting Officer is expected to leave the company in January.
Sirius XM Radio has agreed to issue a total of 108,100,000 shares of common stock, valued at $0.001 per share, in exchange for $15,640,000 worth of Convertible Notes due in 2009 to institutional holders. After this transaction, a total of $193,588,000 remains outstanding.
The company said the transaction is meant to reduce debt and interest cost, as well as to increase equity, and improve the balance sheet - although it will not receive any cash proceeds as a result.
On a related note: last Friday, James Rhyu, Sirius XM Radio's Senior VP and Chief Accounting Officer, said he will leave the company in January for a a senior financial position at another company.
In his place, Sirius XM has appointed Adrienne Calderone to be the acting principal accounting officer. Calderone, 41, has been at the company since August 2006 as Senior Vice President and Controller, and served as Sirius' principal accounting officer before merging with XM.
[View SEC Filing]
The company said the transaction is meant to reduce debt and interest cost, as well as to increase equity, and improve the balance sheet - although it will not receive any cash proceeds as a result.
On a related note: last Friday, James Rhyu, Sirius XM Radio's Senior VP and Chief Accounting Officer, said he will leave the company in January for a a senior financial position at another company.
In his place, Sirius XM has appointed Adrienne Calderone to be the acting principal accounting officer. Calderone, 41, has been at the company since August 2006 as Senior Vice President and Controller, and served as Sirius' principal accounting officer before merging with XM.
[View SEC Filing]
As Kyle's mom would say, "WHAT WHAT WHAT?!"
ten cents?
They were issued at .001 per share? Wow, they issued that stock at a premium considering it's worth about .0000000000000000001 per share and still going down. Anyone that accepts SIRI stock for cash considerations will probably accept a bag full of clipped coupons at 1/32 cents value and trade you some supermarket gift cards. A bag full of clipped coupons is worth a lot more than a bag full of SIRI stock.
Awww, Mel, if you needed 10 bucks I can spot ya. Let me just cash out these 70 SIRI shares I own...ohh, wait, only worth $8.50. Sorry.
I never saw, and I missed the call, what was the decision on the reverse stock split debacle?
WTF? Who is buying this stock? I mean REALLY?
You're better off buying some scratch off lottery tickets.
Divide the debt by the shares and you will see part of the reason behind this transaction.($1.446)
Why dont they use cash to pay off their debt. Oh they have no cash. Sorry.
Have you all read that Toyota will barely break even. I dont think Mel's plans of the auto industry saving sat radio will come true!
Great. Take another piss in the pool.
If you think about what they did, they essentially raised $11m.
This means they needed $11m.
How much did they pay that rat-bastard BTLS?
Thanks Mel. I didn't need that IRA anyhow.
Honestly, I never thought I'd want someone to kick the bucket, but I have to say, if I saw a news story come across CNN or whatever that said "Mel Kraziman, dead at," whatever, I'd look on google finance to see if the price of the stock doubled.
Boy, there's picture just begging for a caption!
Be interesting to see how much slacker's subscriber numbers go up once satellite radio goes belly up. At this rate it won't be long.
James Rhyu was one of the smartest guys at XM. His leaving the SiriusXM is yet more evidence of his intelligence and instinct. Or is it more evidence of the culture of what working with the king with no clothes (Mel) must be like.
Anyone heard rumors about Sirius' Martin Lee?
A famous picture from the 1920's was a person with a wheelbarrow of Deutschmarks going to buy a loaf of bread. Now you need a wheelbarrow to haul XM/Sirius stock.
What if no one buys the stock?
Amazing... they issued 100 million shares to retire the 2% debt... but they ignore the 7 , 8 10, 14 % debt. Sheesh.. even Suzie Orman would laugh at Mel ... you pay off the high interest RATES FIRST! now what was it.. 19 million in debt and they only have 810 million left to issue so thata 8 billion shares to be issued... oops wait one minuite.... they cant issue that much more.
Wow - On a down day for stocks, both Marvel Comics AND World Wrestling were up! Who woulda ever thunk of comic books and professional wrestling being more valuable than broadcasting companies (either terrestrial or satellite)??? YIKES!
Boy, for a stock that a lot of people say is worthless; allot of people feel the need to comment on it!
I wonder why that is!
Could be they are shorts or paid bashers for Goldman sucks!
Just take a step back and think without emotion about what is going on here.
Check Sirius web sit they keep selling out of radios and refilling the stock.
I guess they are selling radios, I gave three as presents this year!
I say F*ck the shorts 263 million of them!
I am holding and will continue to promote Sirius Sat. Radio!
RMAN, being sold out ain't difficult if your stock is minimal to begin with. Or maybe they're always out of stock because they never re-stock. Give us some real numbers and you'll impress the room.
Sirius is the company that counts unsold cars sitting on dealer lots as active subs. Don't drink the illusionary Kool Aid.
Have to love the propaganda and the fan boys.
Yeah, I held on too... Now my $50,000 investment is worth $1,750. I can't let it get below $500 or I will not have enough money to buy a gun. I guess I could always just use a rope.
I know 3 people who have canceled sirius and yet still keep getting the service for no cost..maybe if this company could figure out the basics of handling customer accounts they may survive. As it is I'm now thinking of canceling myself just to see what happens...I'll probably get the servic for free as well..Once Howard is gone they're done.
I don't think these are all people trying to short the stock. I certainly don't fall into that camp. I'm just a stockholder that's pissed the stock has dropped so unbelievably low. At this point it's pretty much inevitable that NASDAQ will hand SIRI/XM a delisting as a Christmas present.
I'm also a holder of two subscriptions to SIRI and while I'm not upset about the programming, I am pissed about the fact that it took SO long to reach the merger and now that it's finally here the company's in a death spiral.
I wouldn't rely too much on the selling out/refilling appearance. Sirius is running a sale right now and it's potentially current subscribers taking the opportunity to upgrade their kit.
You're so sure that the folks posting here are stock shills, who's to say you're not some Sirius plant yourself?
This transaction actually comes out to 0.14468 a share; not bad considering the current PPS.
108,100,000 shares were traded for $15,640,000 principal amount of our 2½% Convertible Notes due 2009.
http://idea.sec.gov/Archives/edgar/data/908937/000093041308007330/c56069_8k.htm
Sam
RMAN,
"I guess they are selling radios, I gave three as presents this year!"
WHAT? Thats like buying someone a crutch for present.
Happy Holidays! Now here is a worthless radio which you have to pay for the poor quality radio, and the radio's won't work soon as siriusxm is on it's last crippled leg. Those three radio's are going right back to the return pile on 12/26. satellite radio is the gift bought by newbs and suckers for newbs and suckers.
Troll alert!
Sirius XM is the HD-DVD of the audio world. I don't know that it will die out completely if and when they do take the plunge. Someone may buy it out and it could become an iphone app.