Published on 8/2/2021 in the Prospect News High Yield Daily.
New Issue: Sirius XM prices upsized $2.5 billion unsecured notes in two tranches
By Paul A. Harris
Portland, Ore., Aug. 2 – Sirius XM Radio Inc. priced an upsized $2.5 billion amount of senior notes (Ba3/BB) in two tranches on Monday, according to market sources.
The quick-to-market deal, which was upsized from $2 billion, included an upsized $1 billion tranche of five-year notes that priced at par to yield 3 1/8%. The tranche size increased from $750 million. The yield printed at the tight end of yield talk in the 3¼% area, and inside of early guidance in the mid-3% area.
Sirius XM also priced an upsized $1.5 billion tranche of 10-year notes at par to yield 3 7/8%. The tranche size increased from $1.25 billion. The yield printed at the tight end of yield talk in the 4% area. Initial guidance was in the low 4% area.
The deal was heard to be playing to $7 billion of demand across both tranches, a trader said.
Citigroup Global Markets Inc. was at the left of a syndicate of joint bookrunners.
The syndicate includes Barclays, BofA Securities Inc., J.P. Morgan Securities LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., Credit Agricole CIB, Goldman Sachs & Co. LLC, RBC Capital Markets Corp., Scotia Capital (USA) Inc., Truist, U.S. Bancorp Investments Inc., Morgan Stanley & Co. LLC, Mizuho Securities USA Inc., Wells Fargo Securities LLC.
The New York-based broadcasting company plans to use the proceeds plus cash on hand to redeem all $1 billion of its 5 3/8% senior notes due 2026 and $1 billion of its $1.5 billion of outstanding 4 5/8% senior notes due 2024.
| Issuer: | Sirius XM Radio Inc.
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| Amount: | $2.5 billion
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| Securities: | Senior notes
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| Bookrunners: | Citigroup Global Markets Inc., Barclays, BofA Securities Inc., J.P. Morgan Securities LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., Credit Agricole CIB, Goldman Sachs & Co. LLC, RBC Capital Markets Corp., Scotia Capital (USA) Inc., Truist, U.S. Bancorp Investments Inc., Morgan Stanley & Co. LLC, Mizuho Securities USA Inc., Wells Fargo Securities LLC
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| Trade date: | Aug. 2
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| Settlement date: | Aug. 16
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| Ratings: | Moody's: Ba3
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| S&P: BB
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| Distribution: | Rule 144A and Regulation S for life
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| Marketing: | Drive-by
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| Five-year notes
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| Amount: | $1 billion, increased from $750 million
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| Maturity: | Sept. 1, 2026
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| Coupon: | 3 1/8%
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| Price: | Par
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| Yield: | 3 1/8%
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| Spread: | 248 basis points
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| First call: | Sept. 1, 2023 at 101.563
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| Price talk: | 3¼% area
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| 10-year notes
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| Amount: | $1.5 billion, increased from $1.25 billion
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| Maturity: | Sept. 1, 2031
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| Coupon: | 3 7/8%
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| Price: | Par
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| Yield: | 3 7/8%
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| Spread: | 271 bps
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| First call: | Sept. 1, 2026 at 101.938
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| Price talk: | 4% area
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