Thursday, February 08, 2007
Barrons: UBS Sees Sale Leaseback On XM-4 Satellite
February 8, 2007, 9:54 am
XM: UBS Sees Sale/Leaseback Deal On Satellite Raising $300 Million
Posted by Eric Savitz
XM Satellite Radio
(XMSR) is negotiating a sale and leaseback deal for its XM-4 satellite that could yield up to $300 million in cash for the company, according to UBS analyst Lucas Binder. Completing the deal would remove the need for the company to access its revolving credit line, he says, as well as providing liquidity from a previously non-liquid asset. He says the deal should be structured as a capital lease.
XM is due to report earnings next week. Binder maintains a Neutral rating and $15.50 price target on the stock...read more:
here2/08/2007 10:42:00 AM
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