News for 'SIRI' - (=DJ Sirius XM In Talks With Lenders to Revamp Financing) DOW JONES NEWSWIRES
Sirius XM Radio Inc. (SIRI) said it is in talks with several lenders about revamping its financing.
The disclosure comes amid Wall Street worries about a slowdown in satellite-radio growth and the company's looming debt payments.
Chief Executive Mel Karmazin's focus is on shoring up investor confidence by refinancing $300 million in convertible bonds that come due in February, replacing them with bank debt. In early September, he told investors that he had already begun a series of meetings with banks.
However, the company left unchanged its earnings and revenue forecasts for 2008 and 2009.
Shares recently were up 11% at 28 cents in recent premarket trading.
Sirus, formed from the merger in July of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., said it is in talks with "several financial institutions" about "a financing to replace" debt due in 2009.
The company's five-year forecast sees a 38% rise in subscriberships between 2009 and 2013. Sirius sees 19.1 million subscribers at the end of the year and 20.6 million subscribers in 2009. Subscribership is then expected to rise to 22.1 million in 2010, 24 million in 20 11, 26.2 million in 2012 and 28.4 million in 2013.
It sees revenue increasing about 85% over the period, from $2.7 billion 2009 to $3 billion in 2010, $3.4 billion in 2011, $3.8 billion in 2012, and $4.1 billion in 2013.
The downward trajectory accelerated in early September after the company issued subscriber forecasts that fell below analysts' expectations and failed to reassure investors about looming debt payments.
The merger of Sirius and XM was supposed to build confidence in satellite radio, in which subscribers pay a monthly fee for programming that is delivered through special receivers.
-By Mike Barris, Dow Jones Newswires; 201-938-5658; firstname.lastname@example.org