Jump to content


Welcome to DBSTalk


Sign In 

Create Account
Welcome to DBSTalk, like most online communities you must register to view or post in our community, but don't worry this is a simple free process that requires minimal information for you to signup. Be a part of DBSTalk by signing in or creating an account.
  • Start new topics and reply to others
  • Subscribe to topics and forums to get email updates
  • Get your own profile page and make new friends
  • Send personal messages to other members.
 
Guest Message by DevFuse

Photo

Standard & Poor's Bashes XM Financing Deal


  • Please log in to reply
No replies to this topic

#1 OFFLINE   John Corn

John Corn

    Hall Of Fame

  • Registered
  • 5,046 posts
Joined: Mar 21, 2002

Posted 26 December 2002 - 08:11 AM

Calling the terms and nature of the new deal "tantamount to a default," S&P analyst Steve Wilkinson says the exchange offer XM announced yesterday — to swap $325 million worth of notes due in 2010 for an identical amount of notes due 2009 — isn't good for noteholders. "Although the exchange offer will not alter the principal value of the notes or the interest rate," he says, "it will require noteholders to defer cash interest payments for a period of time, which is considered a material concession." Wilkinson also warns that if the swap isn't approved by the required 90% of noteholders, XM will be precluded from completing two other financing agreements that are "critical to its ability to continue as a going concern." S&P lowered its corporate credit rating on XM from "CCC-" to "CCC+" and warned that if the exchange offer is completed the issue rating on the new senior secured notes will be lowered to "D" and the company's corporate credit rating will be lowered to "SD," indicating a selective default.

http://www.radioandr...ws/homepage.htm
Have a Great Day! :) :flag:

...Ads Help To Support This SIte...



spam firewall