If you’re feeling good about the market, you’re not alone. Take my hand as we go over some of this week’s more uplifting headlines.
1. Debtor alive
Sirius XM Radio raised some money this week, issuing $600 million in senior notes.
Financing moves rarely make this column. Why would we applaud a leveraged media giant taking on more debt? This is a brilliant move on Sirius XM’s part. For starters, it’s cashing in on an attractive interest rate of 5.75% for the notes that will come due in eight years.
The satellite radio provider is also using the proceeds to help pay off its 8.75% senior notes due in 2015. In other words, it’s shaving its borrowing costs while pushing out its maturities another six years.
2. Pop the question
Making soda at home is becoming more popular than you think. Sodastream International Ltd (NASDAQ:SODA) moved higher after posting better-than-expected quarterly results.
Revenue rose 29%, to $132.4 million, ahead of the 26% pop that analysts were targeting. Net income climbed 36%, to $12.9 million — or $0.57 a share — also ahead of the $0.54 a share that Wall Street was forecasting.
It was a solid quarter. Unit sales of soda makers, carbonators, and soda flavors were up 22%, 31%, and 18%, respectively. The star attraction was a 55% surge in soda-thirsty Americas, but even the more established European region came through with a 26% uptick in revenue.
Sodastream International Ltd (NASDAQ:SODA) is juicing up its guidance for the second time this year. The Israeli-based pop star is now eyeing 29% top-line growth, and 23% in earnings growth for all of 2013.
Do you really think that this is just a fad?
3. Can the Facebook Inc (NASDAQ:FB) IPO jokes
Facebook Inc (NASDAQ:FB) was a dud when it went public, but now it’s getting a second chance to make things right.
The social networking website operator hit $38 in intraday trading on Wednesday, temporarily reclaiming its IPO price from May of last year.
It’s been a long road back for Facebook Inc (NASDAQ:FB). The stock became a busted IPO shortly after going public 15 months ago, bottoming out in the mid-teens late last summer. Facebook Inc (NASDAQ:FB) has clawed its way back with strong quarterly performances, debunking the pervasive myth that the site is starting to wane in popularity.