Siri Debt offering boosted to $800mm

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03-12-2010, 07:22 PM
Sirius Roadkill

Siri Debt offering boosted to $800mm

SIRIUS XM Radio Prices Offering of $800 Million of Senior Notes Due 2015

NEW YORK, March 12, 2010 /PRNewswire via COMTEX News Network/ -- SIRIUS XM Radio (Nasdaq: SIRI) priced an offering of $800 million of Senior Notes due 2015.

(Logo: http://www.newscom.com/cgi-bin/prnh/...19/NYTU044LOGO )

The notes, which were offered pursuant to Rule 144A and Regulation S under the Securities Act of 1933 (the "Securities Act"), will bear interest at an annual rate of 8.75%. The price to investors will be 100% of the principal amount of the notes. The company will receive gross proceeds of $800 million from the sale of the notes before deducting the initial purchasers' commissions and estimated offering fees and expenses.

SIRIUS XM will use the net proceeds from the offering to redeem all of its outstanding 9-5/8% Senior Notes due 2013, including premiums and accrued and unpaid interest thereon; to prepay in full all of its borrowings under its senior secured term loan that matures in 2012; and to pay fees and expenses related to the offering. SIRIUS XM intends to use any remaining net proceeds for general corporate purposes.
03-12-2010, 07:43 PM
Sirius Roadkill

Pretty impressive when you can go out on the street in this environment and shake loose $800mm at 875 . . shaved almost 90 basis points off the 2013 debt . . credit upgrades should now follow shortly

MM's will continue to sit on this share price, however, until $1 options expire on Friday 3/19 . . . you can bet on that

Days like this make me wonder what ever happened to long-time Seeking Alpha contrarian "JSwede" who fancied himself a bit of a credit ratings guru . . .
03-14-2010, 11:50 AM
SiriuslyLong

Quote:

Originally Posted by Sirius Roadkill

SIRIUS XM Radio Prices Offering of $800 Million of Senior Notes Due 2015

NEW YORK, March 12, 2010 /PRNewswire via COMTEX News Network/ -- SIRIUS XM Radio (Nasdaq: SIRI) priced an offering of $800 million of Senior Notes due 2015.

(Logo: http://www.newscom.com/cgi-bin/prnh/...19/NYTU044LOGO )

The notes, which were offered pursuant to Rule 144A and Regulation S under the Securities Act of 1933 (the "Securities Act"), will bear interest at an annual rate of 8.75%. The price to investors will be 100% of the principal amount of the notes. The company will receive gross proceeds of $800 million from the sale of the notes before deducting the initial purchasers' commissions and estimated offering fees and expenses.

SIRIUS XM will use the net proceeds from the offering to redeem all of its outstanding 9-5/8% Senior Notes due 2013, including premiums and accrued and unpaid interest thereon; to prepay in full all of its borrowings under its senior secured term loan that matures in 2012; and to pay fees and expenses related to the offering. SIRIUS XM intends to use any remaining net proceeds for general corporate purposes.

So what's going on here SRK? First $550 is announced to call a 2013 issue. then it's increased to $800 MM to include expiring some 2012 debt as well? That's what I'm reading, but haven't dug into it too deep.

It's all good brother. It's all good.
03-15-2010, 01:01 PM
Sirius Roadkill

Yes SL . . . it is all good! :)

These are incremental improvements to the balance sheet that will fortify the overall capital structure; not catalysts in and of themselves . . but drivers of positive momentum nonetheless which ultimately lead to improved credit rating and lower overall borrowing costs which trickle to the bottom-line.

On an unrelated note . . these daily/predictable 4 cent swings are a thing of beauty if you can nail the timing with your over-core position . . .
03-19-2010, 04:42 PM
john

While I think it was costly in the beginning it will save them a little down the line. The best part about it they are expanding out that 2013 debt. Also yes it is great that they were able to get even more then they originally asked for.