Published on 8/2/2017 in the Prospect News High Yield Daily.
New Issue: Sirius XM prices $500 million notes in two add-on tranches; both come at 101
By Paul A. Harris
Portland, Ore., Aug. 2 – Sirius XM priced $500 million of senior notes (Ba3/BB) in two add-on tranches on Wednesday, according to a market source.
The deal included a $250 million add-on to the 3 7/8% senior notes due 2022, which priced at 101 to yield 3.6%.
A $250 million add-on to the 5% notes due 2027 also priced at 101 to yield 4.846%.
Both tranches priced on top of price talk.
J.P. Morgan Securities LLC, Barclays, Morgan Stanley & Co. LLC, BMO Securities, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., RBC Capital Markets, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, BNP Paribas Securities Corp., Credit Agricole CIB, Mizuho Securities, Scotia Capital and U.S. Bancorp Investments Inc. managed the sale.
The issuing entity will be subsidiary Sirius XM Radio Inc.
The New York-based radio broadcasting company intends to use the proceeds to redeem all of its 5¼% senior secured notes due 2022 and to pay down its revolving credit facility.
| Issuer: | Sirius XM Radio, Inc.
|
| Amount: | $500 million
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays, Morgan Stanley & Co. LLC, BMO Securities, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., RBC Capital Markets, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, BNP Paribas Securities Corp., Credit Agricole CIB, Mizuho Securities, Scotia Capital, U.S. Bancorp Investments Inc.
|
| Trade date: | Aug. 2
|
| Settlement date: | Aug. 16
|
| Ratings: | Moody's: Ba3
|
| S&P: BB
|
| Distribution: | Rule 144A for life
|
| Marketing: | Quick to market
|
|
|
| 3 7/8% notes due 2022
|
| Face amount: | $250 million
|
| Proceeds: | $252.5 million
|
| Maturity: | Aug. 1, 2022
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| Security description: | Add-on to 3 7/8% senior notes due Aug. 1, 2022
|
| Coupon: | 3 7/8%
|
| Price: | 101
|
| Yield to worst: | 3.6%
|
| Spread: | 191 bps
|
| First call date: | Aug. 1, 2020
|
| Price talk: | 101
|
| Original issue: | $750 million priced at par on June 26, 2017
|
| Total issue size: | $1 billion
|
|
|
| 5% notes due 2027
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| Face amount: | $250 million
|
| Proceeds: | $252.5 million
|
| Maturity: | Aug. 1, 2027
|
| Security description: | Add-on to 5% senior notes due Aug. 1, 2027
|
| Coupon: | 5%
|
| Price: | 101
|
| Yield to worst: | 4.846%
|
| Spread: | 269 bps
|
| First call date: | Aug. 1, 2022
|
| Price talk: | 101
|
| Original issue: | $1.25 billion priced at par on June 26, 2017
|
| Total issue size: | $1.5 billion
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