Satellite radio provider SiriusXM has amended its senior secured revolving credit facility, upsizing it by US$500m to US$1.75bn and pushing out the maturity from December 2017 to June 2020.
The company said that the transaction was opportunistic and…
Satellite radio provider SiriusXM has amended its senior secured revolving credit facility, upsizing it by US$500m to US$1.75bn and pushing out the maturity from December 2017 to June 2020.
The company said that the transaction was opportunistic and would give it additional financial flexibility. The amended facility was not drawn at closing.
Commenting the on financing, David Frear, long time CFO of SiriusXM, said: “SiriusXM’s financial strength has continued to rapidly improve and we are pleased that the bank market has recognized that fact allowing us to increase the facility size by 40% while improving terms and extending the maturity.
“This amended facility allows us to continue to tightly manage our cash and debt balances while providing a substantial and readily available source of liquidity for strategic opportunities, including the return of capital to shareholders and acquisitions.”
The reference to returning capital to shareholders is particularly pertinent as over the last couple of years SiriusXM has undertaken an aggressive share buyback strategy. In the past two years alone, the company has made around US$4.3bn of share repurchases.
This policy has predominantly been led by SiriusXM’s majority shareholder Liberty Media (58%), which has put pressure on the company’s management to capitalise on its increased profitability and lower leverage to raise more debt in order to return cash to shareholders.
JP Morgan (administrative agent), BofA Merrill Lynch, Barclays Bank, BMO Capital Markets, BNP Paribas, Morgan Stanley, Credit Agricole, Citigroup, Deutsche Bank, Goldman Sachs, Mizuho Bank, RBC Capital Markets, Scotiabank, SunTrust Robinson Humphrey, U.S. Bancorp and Wells Fargo were joint bookrunners and lenders on the facility.
