By Paul A. Harris
St. Louis, March 12 - Sirius XM Radio Inc. priced an upsized $800 million issue of non-callable five-year senior notes (Caa2/B-/) at par to yield 8¾% on Friday, according to a market source.
The yield printed at the tight end of the 8¾% to 9% price talk.
There is a make-whole call at Treasuries plus 50 basis points.
J.P. Morgan Securities Inc. ran the books for the deal, which was upsized from $550 million.
Co-managers were Bank of America Merrill Lynch, Morgan Stanley & Co. Inc. and UBS Investment Bank.
Proceeds will be used to fund the call of the New York-based satellite radio company's 9 5/8% notes due 2013.
| Issuer: | Sirius XM Radio Inc.
|
| Amount: | $800 million, increased from $550 million
|
| Maturity: | April 1, 2015
|
| Securities: | Senior notes
|
| Bookrunner: | J.P. Morgan Securities Inc.
|
| Co-managers: | Bank of America Merrill Lynch, Morgan Stanley & Co. Inc., UBS Investment Bank
|
| Coupon: | 8¾%
|
| Price: | Par
|
| Yield: | 8¾%
|
| Spread: | 634 bps
|
| Call protection: | Non-callable (Make-whole at Treasuries plus 50 bps)
|
| Equity clawback: | 35% at 108.75 until April 1, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | March 12
|
| Settlement date: | March 17
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A for life/Regulation S
|
| Price talk: | 8¾% to 9%
|
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