By Paul A. Harris
Portland, Ore., June 26 – Sirius XM Radio Inc. priced an upsized $2 billion of senior notes (Ba3/BB) in two tranches via a quick-to-market transaction on Monday that saw both tranches grow by $250 million and price at the tight end of talk, according to a market source.
The deal included $750 million of five-year notes which priced at par to yield 3 7/8%. The tranche was increased from $500 million. The yield printed at the tight end of yield talk in the 4% area. Initial guidance was in the low 4% area.
A $1.25 billion amount of 10-year notes priced at par to yield 5%. The tranche size was increased from $1 billion. The yield printed at the tight end of the 5% to 5¼% yield talk. Initial guidance was in the low 5% area.
The two-part deal grew from Monday morning’s announced $1.5 billion size.
JP Morgan Securities LLC was the lead bookrunner.
The New York-based radio broadcasting company intends to use the proceeds, including the additional proceeds resulting from the $500 million overall upsizing of the deal, together with cash on hand, to redeem all of its outstanding 4¼% senior notes due 2020 and 5¾% senior notes due 2021, and to repay a portion of the $1 billion currently outstanding under its revolving credit facility.
| Issuer: | SiriusXM Radio Inc.
|
| Amount: | $2 billion, increased from $1.5 billion
|
| Securities: | Senior notes
|
| Lead: | JP Morgan
|
| Trade date: | June 26
|
| Ratings: | Moody’s: Ba3
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Quick to market
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Coupon: | 3 7/8%
|
| Price: | Par
|
| Yield: | 3 7/8%
|
| Call protection: | Three years
|
| Price talk: | 4% area
|
|
|
| Ten-year notes
|
| Amount: | $1.25 billion
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Call protection: | Five years
|
| Price talk: | 5% to 5¼%
|
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