XM Satellite Radio has just issued a Form S-4 for the exchange of up to $600,000,000 Senior Fixed Rate Notes in aggregate principal amount of 9.75% senior notes due 2014 and $200,000,000 in aggregate principal amount of Senior Floating Rate Notes due 2013.
[Form S-4] (PDF)
Ok, so from everything I see, form s-4 is used for mergers and aquisitions of companies. Basically I dont understand what XM is doing at all.
Somebody help. Is this good or bad?
Neither good nor bad.
This money was used for the recent debt restructuring and simply replaced other securities.
It has nothing to do with a "merger or acquisition" in a practical sense.
XM did, during the recent CC, try to explain to people that this filing would be coming this week so as to keep them from concluding erroneously that there was something other than a debt swap going on.
can someone smarter than me please translate?
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