Sirius XM looking to raise a half billion bucks, plus change

With the much improved bond markets, Sirius XM CEO Mel Karmazin is returning yet again to refinance some of the company’s debt and push out maturities. This time the satellite radio company is looking to raise $550 million.

The sale of the new Senior Notes due 2015 will be only to qualified institutional investors. The proceeds from the offering will be used to redeem all of Sirius Satellite Radio’s 9 & 5/8% Senior Notes due 2013, thus extending the due date for that chunk of debt by two years.

RBR-TVBR observation: Sirius XM has three bond issues due in 2013. This refi will cut the $1.8 billion due that year to $1.3 billion. Once this deal is done, we would expect to see Mel work to refi some of the remainder as well (two bond issues by the pre-merger XM) to spread the company’s debt maturities out more evenly over the coming years.

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