SiriusXM to retire $681.5 million in debt early


Sirius XMThe satcaster, in the midst of a hostile takeover attempt from Liberty Media, announced that on 9/20 it will retire in full all $681,517,000 of its outstanding 13% Senior Notes due in 2013.

SiriusXM will redeem all of its outstanding 13% Senior Notes due 2013 at a redemption price equal to the sum of the present values of the principal amount and the remaining scheduled payments of interest on the 13% Notes to be redeemed discounted to the redemption date, plus accrued and unpaid interest.

Pro forma for the 13% Notes Redemption, the previously announced redemption of its 9.75% Senior Secured Notes due 2015 and the issuance on 8/13 of $400,000,000 of 5.25% Senior Notes due 2022, SiriusXM would have had $2,441,095,000 of total long-term debt as of 6/30/12.

“The successful issuance of the 5.25% Notes and our strong cash position allows us to retire all of our 13% Notes more than 10 months prior to maturity,” said David Frear, SiriusXM EVP/CFO.  “Following the redemption of these Notes, our next notes maturity will be on December 1, 2014.”

Sirius XM’s issued $400 million in new 5.25% debt due in 2022 on Aug. 13, so the news isn’t all that surprising, but it details what Sirius XM plans to do with at least some cash on hand.

RBR-TVBR observation: Debt repurchases and refinancing is obviously the goal right now for the company. It allows for the issuance of new debt at lower rates for future uses such as share buybacks to reduce outstanding share count.