Sirius XM Canada Holdings Inc T.XSR

CIBC

[retiredcf]

likes the stock (in addition to a collection of analysts). They rate XSR as Outperform with a $9.50 target. GLTA

Sirius XM Canada Holdings Inc.

Announces Special Divi After Upsized Debt Refinancing

 Today, SiriusXM Canada announced that it has declared a special dividend of $0.585 per class A share (which are the shares that actually trade). This represents a 7.4% yield on today's opening share price of $7.86, with a record date of June 9 and a payment date of June 19.

 The announcement comes shortly after the company's recently upsized debt offering, where market demand saw SiriusXM raise ~$50M more than that was required to retire its existing high-yield notes, with management opportunistically taking advantage these additional funds.

 Today's announcement returns that cash and then some to shareholders, with a special divi that came in ahead of what we had anticipated. XSR's recently announced credit line, and a positive outlook by management and the board suggest strength in the model and the company’s FCF profile LT.

 Given modest capex requirements, minimal expectations for M&A, and attractive FCF conversion, we see XSR continuing this tradition of delivering cash to shareholders. The yield now sits at ~5.3%, with an increase to the quarterly also anticipated in H2/F14. Our XSR rating remains at SO

XSR-T		2014-05-28	HOLD	Bruce Campbell (2)	Just ranks out of the zone as far as a Buy for him. Has his eye on this for a couple of reasons. 1.) There is a major overhang in the stock because one of their major shareholders has announced they are going to be selling, which could put a lot of pressure on the stock. 2.) It is fairly exciting and a growth business, and wouldn’t be surprised if it moved back into the range where it would be a Buy for him. All new cars get Sirius put into them with a free trial period with many of them ending up subscribing to the service. / Be the first to comment	Price: $7.800 Subject: CANADIAN Bias: BULLISH Owned: No
	XSR-T		2014-05-06	TOP PICK	Mike S. Newton, CIM FCSI	A bit of an auto play as well as a satellite radio play. Has a nice 5% dividend. Corrected recently over some concerns with the parent company which came down a little. There was a big overhang in the stock with a big position owned by CBC and Alan Slate (?). They converted their shares to Class A shares so you wonder if there is something in the works. He is interested because this overhang of large stock might actually enter into the float of the shares that trade on a regular basis. They have also refinanced one of their bonds from about 10% to 5.6%. Raised about $200 million and it was oversubscribed. Self paid subscribers and premium content are doing very well. This new raise of money will create more trading liquidity in the stock and bring more institutional interest to the name. Expect there might be a dividend raise as well as a special dividend. Yield of 5.34%. / Be the first to comment	Price: $7.880 Subject: NORTH AMERICAN - LARGE & ETFs Bias: OPTIMISTIC Owned: Yes
	XSR-T		2014-05-05	TOP PICK	Paul Gardner, CFA	Watched this for years and always knew there were troubled dynamics. They finally accepted the merger that their US parent did. Not cheap on a PE level, but it is a tremendous free cash flow entity. Have low CapX. Focusing on the used car markets which now all have preset Sirius radio. A great free cash flow business and expects there is a real chance of dividend increases. Yield of 5.3%. / Be the first to comment	Price: $7.830 Subject: FIXED INCOME, LARGE CAP DIVIDENDS AND REITS Bias: BULLISH Owned: Yes
	XSR-T		2014-03-25	TOP PICK	Patrick Horan	Performed really well last year and has come off very hard. Turns out that CBC had converted their multi-share voting to single share, indicating to the street that they were going to Sell their position. This was overdone. This is probably the best dividend growth play in Canada right now. Very high free cash flow. Yield of 5.23%. / Be the first to comment	Price: $8.030 Subject: NORTH AMERICAN Bias: CAUTIOUS Owned: Yes