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Sirius XM unit prices $500M add-on debt offering

Sirius XM Holdings Inc.-owned Sirius XM Radio Inc. priced $250 million in 3.875% senior notes due 2022 and $250 million in 5.000% senior notes due 2027.

The notes have an issue price of 101% of their aggregate principal amount plus accrued interest from July 5. These notes will rank equally and be part of the same series as the company's 3.875% senior notes due 2022 and 5.000% senior notes due 2027 issued in July.

The company expects to receive gross proceeds of $505 million from the offering.

The company plans to use the net proceeds to redeem all of its outstanding 5.25% senior secured notes due 2022 and to repay a part of the borrowings outstanding under its revolving credit facility. After these expenses, Sirius XM Radio plans to maintain any excess amount as cash on hand.

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