Sirius XM Holdings Inc. (SIRI) announced Thursday that on October 1, 2016 its Sirius XM Radio Inc. subsidiary will redeem all of its outstanding 5.875% Senior Notes due 2020.
The move is designed to deal with the company’s debt.
As of the closing bell on August 25, $650 million in aggregate principal amount of the 5.875% Notes were outstanding.
SiriusXM intends to use cash on hand as well as the proceeds of a drawing under its revolving credit facility to fund the redemption.
Sirius XM Holdings had $476.5 million in cash against $6.1 billion in total debt, as of the last report done by Seeking Alpha.
After-hours trading late Friday saw Sirius XM shares at $4.19.
Sirius XM has a $20.24 billion market cap.