US pay-radio operator SiriusXM has issued $1.5 billion of new Senior Notes debt in a private placement. The offering was significantly oversubscribed.
The net proceeds will be used to redeem all of its outstanding 5.375 per cent senior notes originally due for repayment in 2025 as well as borrowings of its 4.625 per cent Notes due for redemption in 2023. The new borrowing, priced at 4.125 per cent, will be due for repayment in 2030.
In a filing with the SEC noted that the Covid-19 virus had impacted the business but that advertising had picked up on its Pandora service. It also said it expected that there would still be net growth for subscribers to SiriusXM when it announced its Q2 numbers.
SiriusXM said that as at June 5th it had sufficient cash and cash equivalents, plus borrowings, to fund its operations as well as to pay for future satellites, and their launch and insurance costs.