SiriusXM announced today that its subsidiary, Sirius XM Radio Inc., priced an offering of $1.5 billion of 4.625% Senior Notes due 2024. This represents an increase of $750 million in aggregate principal amount in the offering size of the notes. The sale of the notes is expected to be consummated on or about July 2, 2019, subject to customary closing conditions.
The notes are to be sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and non-U.S. persons outside the United States in compliance with Regulation S of the Securities Act.
The notes will bear interest at an annual rate of 4.625%. The price to investors will be 100% of the principal amount of the notes. The company will receive gross proceeds of $1.5 billion from the sale of the notes before deducting the initial purchasers' commissions and estimated offering fees and expenses.
The company intends to use the net proceeds from the offering, together with cash on hand, to redeem all of its 6.00% Senior Notes due 2024 at a purchase price of 103.00% of the principal amount thereof plus accrued and unpaid interest thereon to, but excluding, the redemption date.
The securities have not been and will not be registered under the Securities Act, or any state securities laws, and may not be offered or sold in the United States absent registration, except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.
This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful. This announcement does not constitute a notice of redemption of the 6.00% Senior Notes due 2024.
About SiriusXM
Sirius XM Holdings Inc. (NASDAQ: SIRI) is the world's largest audio entertainment company, and the premier programmer and platform for subscription- and advertising-supported audio products. With the recent addition of Pandora, the largest streaming music provider in the U.S., SiriusXM reaches more than 100 million people with its audio products.
