Sirius XM on Monday stated it would provide $1 billion in 10-year bonds to redeem earlier debt. The senior notes might be due in 2030.
“The corporate intends to make use of the online proceeds from this providing, along with money readily available, to redeem all of its excellent 5.375% Senior Notes due 2025 at a redemption value of 102.688% of the principal quantity thereof plus accrued and unpaid curiosity thereon to, however excluding, the redemption date,” Sirius stated in its announcement.
Sirius XM’s inventory value was up 0.5% in early-morning buying and selling on Monday to $6.54 per share. The corporate, after dropping beneath $4.50 per share in early April, has seen its inventory value enhance 47% within the final two months.
The corporate, which is dwelling to Howard Stern and options lots of of radio channels, warned the coronavirus pandemic has “adversely impacted” its enterprise; specifically, Sirius XM stated Pandora, the music streaming service it purchased in 2018, had seen a noticeable dip in advertisers — like many different companies — because of the pandemic. Sirius XM stated the previous couple of weeks have been higher for Pandora and its radio enterprise, although, after initially seeing advert income “markedly” lower after stay-at-home orders have been applied in mid-March.
Mixed, Sirius XM and Pandora attain greater than 100 million prospects every month.
“We consider that now we have enough money and money equivalents, in addition to debt capability, to cowl our estimated short-term and long-term funding wants, together with quantities to assemble, launch and insure substitute satellites and strategic alternatives,” Sirius added in its SEC submitting. “As of June 5, 2020, we had roughly $224.6 million of money readily available and $1,749 million was obtainable for future borrowing beneath our revolving credit score facility (after giving impact to excellent letters of credit score).”