Having closed on its sale of $800 million in new 8.75% senior notes due 2015, Sirius XM is now enjoying the benefits of having lots of cash on hand to rework its balance sheet.
The company reports that on March 18th it repaid all of what had been $244,375,000 of borrowings under its term credit agreement with senior lenders headed by Morgan Stanley Senior funding.
The biggest chunk of the bond sale proceeds will be sitting in the corporate coffers at Sirius XM for a few weeks. It plans to redeem the entire $500 million face value of its 9 & 5/8 notes on April 16th. The redemption price will be 104.813% of face value, plus any accrued and unpaid interest.
If there’s still any cash left over after that, it will be used for general corporate purposes by the satellite radio company.