Published on 5/2/2013 in the Prospect News High Yield Daily.
New Issue: Sirius XM doubles deal size, prices $1 billion notes in two tranches
By Paul A. Harris
Portland, Ore., May 2 - Sirius XM Radio Inc. priced a massively upsized $1 billion two-part senior notes transaction (B1/BB) on Thursday, according to a market source.
The deal included a $500 million tranche seven-year notes, which priced at par to yield 4¼%. The yield printed at the tight end of the 4¼% to 4½% yield talk.
In addition Sirius XM priced a $500 million tranche of 10-year notes at par to yield 4 5/8%, on top of yield talk.
The 10-year notes tranche was added subsequent to the deal being announced as a single $500 million offering of seven-year notes. Hence the transaction doubled in size while in the market.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, Barclays, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. were the joint bookrunners.
The New York-based satellite radio broadcaster plans to use the proceeds for general corporate purposes, which may include share repurchases and potential debt refinancing.
| Issuer: | Sirius XM Radio Inc.
|
| Amount: | $1 billion, increased from $500 million
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc.
|
| Co-managers: | BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., RBC Capital Markets LLC, RBS Securities Inc., SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, U.S. Bancorp Investments Inc., BMO Capital Markets
|
| Trade date: | May 2
|
| Settlement date: | May 16
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Quick to market
|
|
|
| Seven-year notes
|
| Amount: | $500 million
|
| Maturity: | May 15, 2020
|
| Coupon: | 4¼%
|
| Price: | Par
|
| Yield: | 4¼%
|
| Spread: | 343 bps
|
| First call: | May 15, 2016 at 102.125
|
| Price talk: | 4¼% to 4½%
|
|
|
| 10-year tranche (Added subsequent to deal announcement)
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| Amount: | $500 million
|
| Maturity: | May 15, 2023
|
| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| Spread: | 300 bps
|
| First call: | May 15, 2018 at 102.313
|
| Price talk: | 4 5/8%
|
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