New Issue: Sirius XM Radio prices $400 million 10-year notes at par to yield 5¼%

By Paul A. Harris

Portland, Ore., Aug. 8 - Sirius XM Radio Inc. priced a $400 million issue of 10-year senior notes at par to yield 5¼% on Wednesday, according to a market source.

The yield printed at the tight end of the 5¼% to 5½% yield talk.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch were the bookrunners for the quick-to-market issue.

Co-managers were Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and UBS Investment Bank.

The New York-based satellite radio provider plans to use the proceeds for general corporate purposes, which may include paying down its 13% senior notes due 2013.

Issuer:	Sirius XM Radio Inc.
Amount:	$400 million
Maturity:	Aug. 15, 2022
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Bank of America Merrill Lynch
Co-managers:	Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, UBS Investment Bank
Coupon:	5¼%
Price:	Par
Yield:	5¼%
Spread:	362 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Aug. 15, 2017, then callable at 102.625, 101.75, 100.875, par on and after Aug. 15, 2020
Equity clawback:	35% at 105.25 until Aug. 15, 2015
Change-of-control put:	101%
Trade date:	Aug. 8
Settlement date:	Aug. 13
Ratings:	Moody's: B1
	Standard & Poor's: BB
Distribution:	Rule 144A and Regulation S for life
Price talk:	5¼% to 5½%
Marketing:	Quick to market

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