Published on 5/18/2016 in the Prospect News High Yield Daily.
New Issue: Sirius XM Radio priced upsized $1 billion 10-year notes at par to yield 5 3/8%
By Paul A. Harris
Portland, Ore., May 18 – Sirius XM Radio Inc. priced an upsized $1 billion issue of 10-year senior notes (Ba3/BB) at par to yield 5 3/8% on Wednesday, according to a market source.
The deal size was increased from $750 million.
The yield printed at the tight end of yield talk in the 5½% area.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were the joint bookrunners for the Rule 144A for life offering.
The New York-based radio company plans to use a portion of the proceeds to pay off its revolver, with the remaining proceeds to be used for general corporate purposes, which may include, from time to time, debt repayment including any future revolver borrowings, dividends or loans to parent Sirius XM, to fund share repurchases of Sirius XM common stock and payment of the cash consideration for Sirius XM's recapitalization of Sirius XM Canada Holdings Inc.
| Issuer: | Sirius XM Radio Inc.
|
| Amount: | $1 billion, increased from $750 million
|
| Maturity: | July 15, 2026
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC
|
| Co-managers: | BMO Securities, BNP Paribas Securities Corp., Credit Agricole CIB, Mizuho Securities, RBC Capital Markets, MUFG, Scotia Capital, U.S. Bancorp Investments Inc.
|
| Coupon: | 5 3/8%
|
| Price: | Par
|
| Yield: | 5 3/8%
|
| Spread: | 353 bps
|
| First call: | July 15, 2021 at 102.688
|
| Trade date: | May 18
|
| Settlement date: | May 23
|
| Ratings: | Moody's: Ba3
|
| S&P: BB
|
| Distribution: | Rule 144A for life
|
| Price talk: | 5½% area
|
| Marketing: | Quick to market
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
