Published on 9/19/2013 in the Prospect News High Yield Daily.
New Issue: Sirius XM upsizes to $650 million, prices seven-year notes at par to yield 5 7/8%
By Paul A. Harris
Portland, Ore. Sept. 19 - Sirius XM Radio Inc. priced an upsized $650 million issue of seven-year senior notes (B1/BB) at par to yield 5 7/8% on Thursday, according to a market source.
The quick-to-market issue was upsized from $600 million.
The yield printed at the tight end of yield talk set in the 6% area.
J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc., BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc. and RBC Capital Markets Corp. were the joint bookrunners.
The New York-based satellite radio broadcaster plans to use the proceeds together with cash on hand, to redeem its outstanding 7 5/8% senior notes due 2018.
| Issuer: | Sirius XM Radio Inc.
|
| Amount: | $650 million, upsized from $600 million
|
| Maturity: | Oct. 1, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc., BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., RBC Capital Markets Corp.
|
| Senior co-managers: | BNP Paribas Securities Corp., Credit Agricole CIB, RBS Securities Inc., SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC
|
| Co-managers: | US Bancorp, BMO Capital Markets Corp.
|
| Coupon: | 5 7/8%
|
| Price: | Par
|
| Yield: | 5 7/8%
|
| Spread: | 376 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Oct. 1, 2016, then callable at 102.938, 101.469, par on and after Oct. 1, 2018
|
| Equity clawback: | 35% at 105.875 until Oct. 1, 2016
|
| Investor put: | 101% upon change of control
|
| Trade date: | Sept. 19
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| Settlement date: | Sept. 24
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| Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6% area
|
| Marketing: | Quick to market
|
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