Satellite radio provider SiriusXM Canada has finally completed its refinancing efforts, redeeming its C$131m of senior notes and netting C$235m in fresh financing.
Having raised C$200m through the private placement of 5.625% senior unsecured notes due…
Satellite radio provider SiriusXM Canada has finally completed its refinancing efforts, redeeming its C$131m of senior notes and netting C$235m in fresh financing.
Having raised C$200m through the private placement of 5.625% senior unsecured notes due 2021 at the end of April, SiriusXM Canada launched a tender offer to purchase all of its C$130.8m outstanding 9.75% senior notes due 2018.
On 27 May, the company announced that it had completed the redemption, paying approximately 107.96% of the principal amount of the notes plus accrued and unpaid interest.
SiriusXM Canada added that it had netted a new C$35m senior secured credit facility with National Bank Canada and Toronto-Dominion Bank.
Remaining proceeds from the new financing will be used for general corporate purposes, including returning capital to shareholders and potential acquisition financing.
SiriusXM Canada’s only other debt was its US$20m of unsecured subordinated convertible notes due 12 September 2014 and which bore an effective interest rate of 10.9%.
In January 2014, the company gave notice of redemption to holders of the debentures and in February all the debt was converted into 3.38 million class A shares. Around 20% of these shares are owned by former parent company SiriusXM of the United States and which, following the conversion, now holds a 37% equity (25% voting) stake.
SiriusXM Canada has around 2.4 million total subscribers of which 1.77 million are self-paying subscribers and 619,000 are paid and non-paid promotional subscribers.
For the three months ended 28 February 2014, the company recorded a 6.8% increase in revenues to C$75.5m, while adjusted EBITDA improved by 5.1% to C$20.1m.
