Satellite radio provider Sirius XM has priced US$650m of senior notes due 2020 at par in its second debt refinancing this quarter.
The bond carries a 5.875% coupon, and will be used with cash on hand to redeem the roughly US$540m it has outstanding in…
Satellite radio provider Sirius XM has priced US$650m of senior notes due 2020 at par in its second debt refinancing this quarter.
The bond carries a 5.875% coupon, and will be used with cash on hand to redeem the roughly US$540m it has outstanding in 7.625% senior notes due 2018.
It was upsized by US$50m before being placed with qualified institutional buyers on 19 September.
JP Morgan, Deutsche Bank, Morgan Stanley, BofA Merrill Lynch, Barclays, Citi and RBC are reportedly bookrunners on the transaction, with BNP Paribas, Credit Agricole CIB, RBS, SunTrust, Wells Fargo Securities, US Bancorp, and BMO Capital Markets as co-managers.
Sirius XM last tapped the high-yield market at the end of July, when it priced US$600m of 5.75% senior notes due 2021 at par. That bond went towards redeeming the company’s outstanding 8.75% senior notes due 2015.
And just two months before that in May the company raised US$1bn through a dual tranche covenant-lite bond, offering seven and ten year senior notes that could be used for debt repurchases, share buybacks and other general corporate purposes.
Sirius XM has been busy pushing out maturities and lowering interest payments to take advantage of buoyant bond markets as well as its stronger financial position, which has also led it to embark upon a US$2bn share buyback programme.
The broadcaster also had around US$502m of 7% exchangeable senior subordinated notes due in 2014 that it would likely look to replace.
As of 30 June 2013, it had leverage of around 3.2x debt-to-EBITDA, and estimated free cash flow of roughly US$800m over the following 12 months.
In mid-August, the company announced its largest acquisition since satellite radio companies Sirius and XM merged back in 2008, by agreeing to buy the connected vehicle services business of roadside assistance specialist Agero for US$530m in cash.
Sirius XM declined to comment on its refinancing strategy.
