That $172.5 million of notes due in 2011 that Sirius XM swapped for notes that would have been due in December have now been registered for public trading. So, we now know that the biggest chunk was held by a group of John Hancock bond funds. What we don’t know is whether the old notes were bought at the original issue price, or later at a deep discount.
Six different John Hancock funds are listed as holders of the notes in the SEC filing to register the new issue for public trading. In all, the John Hancock funds hold notes with a face value of $55,395,000. Goldman Sachs and Co. is next with $32,808,000 held by its various units, plus another $16,775,000 held by Goldman-managed Liberty Harbor Master Fund I LP. Long Island International Limited, controlled by Barclays Capital, and Credit Suisse Securities are each listed as holding $20 million. 10 other investment funds hold the remainder.
Under terms of the swap, the new notes will bear interest at the same 10% rate as the old notes through December 1, 2009, to be paid in cash. From then until December 1, 2010 the notes carry a cash interest payment of 10% plus a payment in kind (PIK) payment of 2% annually in new notes. From December 1, 2010 to the final maturity date of June 1, 2011 the cash payment will be at an annual rate of 10% and the PIK payment at an annual rate of 4%.