Friday, SIRIUS XM Radio (SIRI) announced that it has priced an offering of $800 million of Senior Notes due 2015.
The company indicated that the notes offered will bear interest at an annual rate of 8.75%. The price to investors will be 100% of the principal amount of the notes. The notes were offered pursuant to Rule 144A and Regulation S under the Securities Act of 1933.
The company will receive gross proceeds of $800 million from the sale of the notes before deducting the initial purchasers' commissions and estimated offering fees and expenses
SIRIUS XM Radio is America's satellite radio company that provides subscribers with commercial-free music channels, premier sports, news, talk, entertainment, and traffic and weather. The company also offers SIRIUS Backseat TV for the automobiles.
The company disclosed that, it would use net proceeds from the offering to redeem all of its outstanding 9-5/8% senior notes due 2013, including premiums and accrued to prepay in full all of its borrowings under its senior secured term loan that matures in 2012. The company intends to pay fees and expenses related to the offering and to use any remaining net proceeds for the benefit of the company.
SIRI closed Friday's regular trading at $0.91 down $0.0001 or 0.01% on the Nasdaq.
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