By Paul A. Harris
Portland, Ore., June 5 – Sirius XM Radio Inc. priced an upsized $1.25 billion issue of 10-year senior notes (existing ratings Ba3/BB) at par to yield 5½% in a quick-to-market Wednesday trade, according to market sources.
The issue size increased from $1 billion.
The yield printed in the middle of yield talk in the 5½% area and at the tight end of the 5½% to 5¾% initial talk.
The issuer was testing the water at 5 3/8%, according to an investor, who added that would have been too tight.
The issuer came forward with the extra 12.5 basis points, and the deal, which played to $3.5 billion of orders, was trading well at par ½ bid, the investor said.
J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., BofA Securities Inc., BMO Securities, BNP Paribas Securities Corp., Credit Agricole CIB, Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc., Scotia Capital, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the joint bookrunners.
The New York-based audio entertainment company plans to use the proceeds to repay a portion of its $1.75 billion revolving credit facility, with remaining proceeds to be used for general corporate purposes, including share repurchases.
Issuer: | Sirius XM Radio Inc.
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Amount: | $1.25 billion, increased from $1 billion
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Maturity: | July 1, 2029
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Securities: | Senior notes
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Bookrunners: | J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., BofA Securities Inc., BMO Securities, BNP Paribas Securities Corp., Credit Agricole CIB, Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc., Scotia Capital, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
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Coupon: | 5½%
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Price: | Par
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Yield: | 5½%
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Spread: | 338 bps
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Call protection: | Five years
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Trade date: | June 5
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Settlement date: | June 7
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Existing ratings: | Moody's: Ba3
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| S&P: BB
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 5½% area
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Marketing: | Quick to market
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