XM Satellite Radio talks $400 million five-year bullet notes with 13% coupon, 16% area yield

By Paul A. Harris

St. Louis, July 23 - XM Satellite Radio Holdings Inc. set price talk for its $400 million offering of five-year senior bullet notes with a 13% coupon, at a discount, for a yield in the 16% area on Wednesday, according to informed sources.

Pricing is expected on Thursday.

J.P. Morgan Securities Inc., Morgan Stanley and UBS Investment Bank are joint bookrunners for the Rule 144A and Regulation S offering.

Proceeds will be used to refinance debt in connection with the pending merger of XM with Sirius Satellite Radio, Inc. Completion of that merger is subject to Federal Communications Commission approval and other conditions.

The offering will be structured so that it can be unwound if the merger is not consummated.

XM is a Washington, D.C.-based satellite radio company.

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