WASHINGTON (dpa-AFX) - SIRIUS XM Radio Inc. (SIRI) said Wednesday that it has priced an offering of $400 million of Senior Notes due 2022.
The notes, which were offered to qualified institutional buyers, will bear interest at an annual rate of 5.25%. The price to investors will be 100% of the principal amount of the notes.
The company will receive gross proceeds of $400 million from the sale of the notes before deducting the initial purchasers' commissions and estimated offering fees and expenses.
SiriusXM plans to use the net proceeds from the offering for general corporate purposes, which may include, from time to time and as market conditions warrant, the repurchase, redemption, defeasance, tender or repayment of its outstanding indebtedness, including its 13% Senior Notes due 2013. Pending application of those amounts, SiriusXM currently expects to maintain any excess amount as cash on hand.
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