Published on 7/29/2013 in the Prospect News High Yield Daily.
New Issue: Sirius XM prices $600 million eight-year notes at par to yield 5¾%
By Paul A. Harris
Portland, Ore., July 29 - Sirius XM Radio Inc. priced a $600 million issue of eight-year senior notes (B1/BB) at par to yield 5¾% on Monday, according to a syndicate source.
The yield printed 25 basis points beyond the wide end of the 5 3/8% to 5½% yield talk.
BofA Merrill Lynch was the left bookrunner for the quick-to-market deal.
Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Morgan Stanley & Co. LLC and SunTrust Robinson Humphrey Inc. were the joint bookrunners.
The New York-based satellite radio broadcaster plans to use the proceeds, along with cash on hand, to redeem its company's 8¾% senior notes due 2015.
| Issuer: | Sirius XM Radio Inc.
|
| Amount: | $600 million
|
| Maturity: | Aug. 1, 2021
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc.
|
| Senior co-managers: | Barclays, BNP Paribas Securities Corp., RBC Capital Markets LLC, RBS Securities Inc., Wells Fargo Securities LLC
|
| Co-managers: | U.S. Bancorp Investments Inc., BMO Capital Markets Corp.
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 358 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Aug. 1, 2016, then callable at 104.313, 102.875, 101.438, par on and after Aug. 1, 2019
|
| Equity clawback: | 35% at 105.75 until Aug. 1, 2016
|
| Investor put: | 101% upon change of control
|
| Trade date: | July 29
|
| Settlement date: | Aug. 1
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 5 3/8% to 5½%
|
| Marketing: | Quick to market
|
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