SIRIUS XM Refinancing Debt - Analyst Blog

Sirius XM Radio Inc. (SIRI) is going to offer $800 million of senior notes in a private placement. These notes will bear a coupon of 8.75% and mature in 2015. The company will use the proceeds to pay down a portion of the $1.8 billion of debt maturing in 2013. This move will boost the company’s liquidity position.

Liberty Media Corp. (LCAPB), an affiliate of the issuer, intends to purchase $150 million of the notes in the offering. The size of the new issue was increased from an originally planned amount of $550 million. 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.
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