Huge Wall Street embrace for Sirius XM bond offering


There’s still more evidence that the Wall Street bond market is wide, wide open for broadcasters. Sirius XM went in seeking $550 million. It collected $700 million.

XM Satellite Radio, a wholly owned subsidiary of Sirius XM post-merger, was raising $550 million primarily to buy back $526 million of 11.25% bonds that come due in 2013. Reception was so strong for the new senior notes due 2018 that the private placement was expanded to $700 million.

Not only that, but the company will pay considerably less in interest. The new issue priced at par with a coupon of 7.625%.

As previously reported, the tender offer for the 2013 issue runs through November 9th, with a premium offered for those tendered by October 26th. The extra cash left over from the sale of the 2018 notes will be used for general corporate purposes.

RBR-TVBR observation: We’ve said it before. The bond market is hot, even as the bank debt market for broadcasting is as chilly as can be. Any broadcasting company that’s big enough to issue bonds and has a balance sheet that’s…um…balanced should be looking at jumping through this Wall Street window while it is open.