Friday, March 25, 2011

Is Sirius' (SIRI) Tender Offer to Purchase Convertible Notes Relevant?

News that Sirius XM (NASDAQ:SIRI) made a tender offer to acquire 3.25 percent convertible notes due in 2011 appears to be largely irrelevant. It's probably more of a marketing decision in order to give the appearance of being more fiscally responsible than anything else.

Sirius has also been purchasing bonds on the open market lately as well.

Assuming the tender offer is successful, all it would do at best is save Sirus about $1 million this year on interest; barely worth the effort.

That's why it seems to be more of a publicity stunt than a legitimate move to shore up its balance sheet.

Sirius was trading at $1.71, up $0.01, or 0.59 percent, as of 12:45 PM EDT.




Source

1 comment:

Anonymous said...

Is this article relevant?