By Paul A. Harris
Portland, Ore., June 5 – Sirius XM Radio Inc. priced an upsized $1.25 billion issue of 10-year senior notes (existing ratings Ba3/BB) at par to yield 5½% in a quick-to-market Wednesday trade, according to market sources.
The issue size increased from $1 billion.
The yield printed in the middle of yield talk in the 5½% area and at the tight end of the 5½% to 5¾% initial talk.
The issuer was testing the water at 5 3/8%, according to an investor, who added that would have been too tight.
The issuer came forward with the extra 12.5 basis points, and the deal, which played to $3.5 billion of orders, was trading well at par ½ bid, the investor said.
J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., BofA Securities Inc., BMO Securities, BNP Paribas Securities Corp., Credit Agricole CIB, Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc., Scotia Capital, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the joint bookrunners.
The New York-based audio entertainment company plans to use the proceeds to repay a portion of its $1.75 billion revolving credit facility, with remaining proceeds to be used for general corporate purposes, including share repurchases.
| Issuer: | Sirius XM Radio Inc.
|
| Amount: | $1.25 billion, increased from $1 billion
|
| Maturity: | July 1, 2029
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., BofA Securities Inc., BMO Securities, BNP Paribas Securities Corp., Credit Agricole CIB, Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc., Scotia Capital, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | 338 bps
|
| Call protection: | Five years
|
| Trade date: | June 5
|
| Settlement date: | June 7
|
| Existing ratings: | Moody's: Ba3
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5½% area
|
| Marketing: | Quick to market
|
© 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.
