With the corporate bond market showing signs of improvement, the XM subsidiary of Sirius XM is stepping up to claim some cash. It is making an offering of $350 million in senior notes to refinance some of its expensive debt.
According to its 10-K filing with the SEC, XM has a $350 million credit facility, which is fully drawn and $100 million of which is due in 2009, $175 million is due by May 5, 2010 and $75 million is due in May 2011.
The new offering of senior secured notes due 2013 will be offered to qualified institutional buyers only.
“XM will use the net proceeds from the offering to repay all amounts outstanding under its amended and restated credit agreement. The balance of the net proceeds will be used for general corporate purposes,” Sirius XM said in announcing the offering.
