Sirius XM to price $750 million 10-year senior notes Thursday

By Paul Deckelman

New York, May 1 - Sirius XM Radio, Inc., a New York-based satellite radio broadcaster, plans to sell $750 million of 10-year senior notes on Thursday, high-yield syndicate sources said.

The deal is expected to price sometime later in Thursday's session via joint bookrunners J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., BofA Merrill Lynch, Morgan Stanley & Co. LLC and SunTrust Robinson Humphrey Inc. The dealers were marketing the deal to potential investors via a 10:30 a.m. ET conference call.

The notes, being sold under Rule 144A and Regulation S for the life of the issue, will have five years of call protection.

The securities will carry investment-grade style covenants.

The company plans to use the net proceeds from the debt sale for general corporate purposes, which could include the repayment or repurchase of its senior or subordinated debt and revolving credit debt, as well as for funding dividends to corporate parent Sirius XM Holdings Inc., or to fund share repurchases of the company's common stock. The company plans to hold the proceeds as cash on its balance sheet pending any such use of the proceeds.

The company's existing notes are rated B1 by Moody's Investors Service and BB by Standard & Poor's.

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