S&P rates Sirius XM notes BB

Standard & Poor's said it assigned a BB rating to Sirius XM Radio Inc.'s proposed issuance of $750 million senior notes due 2024 with a recovery rating of 3.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The company will initially use proceeds to repay revolving credit facility borrowings and ultimately to fund share repurchases, S&P said.

The ratings incorporate an expectation that leverage will not increase to more than 4.5x because of its good operating outlook and growing discretionary cash flow, the agency said, despite moves to boost shareholder returns.

The company's significant financial risk-profile assessment is based on the company's more aggressive financial policy since Liberty Media Corp. assumed majority control of Sirius XM in January 2013, S&P added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.