Zeev's Turnips Patch-No Politics (ZEEV)

[kron7777]

Hi Zeev,
could you, please, think like a criminal for a minute about the news below. I have concerns about the timing: why couldn't they wait until shares are trading at higher levels since they had enough cash to fund operations for another year?
What the short term implications could be? Like arbitrage shorting, etc? If this is good news (now they have even more than enough cash until they become break even), then why is the sell off?
Thanks.

Sirius Satellite Radio Inc. (NasdaqNM:SIRI - News) on Tuesday priced $175 million in convertible notes meant to cover the company's funding gap and bring it to cash-flow break even.
Sirius said it priced an offering of convertible notes yielding 3.5 percent and due in 2008. The notes are convertible at $1.38 per share, which is a 22 percent premium over the stock's close of $1.13.

Net proceeds of about $169 million, before expenses, are expected to close the subscription radio broadcaster's funding gap of about $100 million.