Sirius XM Radio would like to buy back any or all of its $98 million of 3.25% Convertible Notes due later this year. It first offered $1,007.50 per $1,000 of face value and has now increased that to $1,010.
The tender deadline is still the same, April 20. Morgan Stanley is dealer manager for the tender.
The conversion rate on the notes into common stock works out to $5.30 per share, so it’s not likely that anyone plans to convert them. The stock closed Tuesday (4/5) at $1.78. The notes come due October 15th, but Sirius XM has been working to buy back the issue rather than wait.
The original issue of $230 million was made in October 2004.
“In December 2010, we purchased $38,021,000 of the outstanding 3.25% Notes at a price of 100.25% of the principal amount plus accrued interest. We recorded an aggregate loss on extinguishment of the 3.25% Notes of $209,000 consisting primarily of unamortized discount, deferred financing fees and repayment of premium to Loss on extinguishment of debt and credit facilities, net, in our consolidated statement of operations,” the company reported in a recent SEC filing.
“In February 2011, we purchased $94,148,000 of the outstanding 3.25% Notes at a price of 100.75%-100.94% of the principal amount plus accrued interest. We will recognize an aggregate loss on extinguishment of $1,079,000 on the 3.25% Notes, which consists primarily of unamortized discount and deferred financing fees in the first quarter of 2011,” it also reported.
Following those private buybacks the current public tender is intended to pull in as much as possible of the remaining $97,831,000 outstanding.