By Paul A. Harris
Portland, Ore., June 7 – Sirius XM Radio Inc. priced an upsized $2 billion issue of seven-year senior notes (Ba3/BB) at par to yield 4% in a Monday drive-by, according to market sources.
The issue size increased from $1.5 billion.
The yield printed at the tight end of yield talk in the 4 1/8% area. Initial guidance was in the 4¼% area.
The deal was heard to be playing to $2.5 billion of demand, a trader said.
J.P. Morgan Securities LLC was the lead.
The New York-based audio entertainment company plans to use the proceeds to pay off its 3 7/8% senior notes due 2022, which become callable at par on Aug. 1, 2021, and to pay down its senior secured credit facility. Pending the August redemption date, the company will apply the proceeds to its credit facility.
| Issuer: | Sirius XM Radio Inc.
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| Amount: | $2 billion, increased from $1.5 billion
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| Maturity: | July 15, 2028
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| Securities: | Senior notes
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| Lead: | J.P. Morgan Securities LLC
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| Coupon: | 4%
|
| Price: | Par
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| Yield: | 4%
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| Spread: | 276 bps
|
| Call protection: | Three years
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| Trade date: | June 7
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| Ratings: | Moody's: Ba3
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| S&P: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 4 1/8% area
|
| Marketing: | Drive-by
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