Sirius XM Holdings Inc.'s unit Sirius XM Radio Inc. plans to offer an additional $250 million of its 3.875% senior notes due 2022 and an additional $250 million of its 5.000% senior notes due 2027 as an add-on to the existing series of those notes currently outstanding.

The company plans to use the net proceeds from this offering to redeem all of its outstanding 5.25% senior secured notes due 2022 and to repay a portion of the borrowings outstanding under its revolving credit facility. After these expenses, the company currently intends to keep any excess amount as cash on hand.

As of June 30, Sirius XM Radio had $400 million of 5.25% secured notes outstanding. These notes are redeemable on and after Aug. 15 at 102.625% of the principal amount thereof, plus accrued and unpaid interest.