Sirius XM bond sale expanded


It seems Wall Street can’t get enough of debt issues by Sirius XM. Demand was so good for the planned $550 million offering that it was significantly expanded.

The satellite radio company reports that it sold $800 million in 8.75% senior notes due 2015 in a private placement to institutional buyers. That, of course, will more than cover redemption of the 9 & 5/8% Senior Notes due 2013 which had been issued pre-merger by Sirius Satellite Radio, which had been the intent of the offering.

Never fear. Sirius XM CEO Mel Karmazin had no trouble finding a use for the extra cash. The company said it will use the net proceeds from the offering to redeem all of its outstanding 9 & 5/8% Senior Notes due 2013, including premiums and accrued and unpaid interest thereon; to prepay in full all of its borrowings under its senior secured term loan that matures in 2012; and to pay fees and expenses related to the offering. Any remaining net proceeds will be used for general corporate purposes.