NEW YORK, June 26, 2017 /PRNewswire/
-- SiriusXM announced today that its subsidiary, Sirius
XM Radio Inc., priced an offering of $750
million of 3.875% Senior Notes due 2022 and $1.25 billion of 5.0% Senior Notes due 2027.
The notes are to be sold to qualified institutional buyers
pursuant to Rule 144A under the Securities Act of 1933, as amended,
and outside the United States in
compliance with Regulation S of the Securities Act. The
Senior Notes due 2022 will bear interest at an annual rate of
3.875% and the Senior Notes due 2027 will bear interest at an
annual rate of 5.0%. The price to investors will be 100% of
the principal amount of the notes. The company will receive
gross proceeds of $2.0 billion from
the sale of the notes before deducting the initial purchasers'
commissions and estimated offering fees and expenses.
The company intends to use the net proceeds from this offering,
together with cash on hand, to redeem all of its outstanding 4.25%
Senior Notes due 2020 (the "4.25% Notes") and 5.75% Senior Notes
due 2021 (the "5.75% Notes") and to repay a portion of the
$1 billion of net borrowings
currently outstanding under its revolving credit facility.
Pending application of these amounts, the company currently expects
to maintain any excess amount as cash on hand.
As of March 31, 2017, the company
had $500 million in aggregate
principal amount of 4.25% Notes outstanding and $600 million in aggregate principal amount of
5.75% Notes outstanding. The 4.25% Notes are currently redeemable
at 101.063% of the principal amount thereof and the 5.75% Notes are
redeemable on and after August 1,
2017 at 102.875% of the principal amount thereof, in each
case plus accrued and unpaid interest.
The securities have not been and will not be registered under
the Securities Act, or any state securities laws, and may not be
offered or sold in the United
States absent registration, except pursuant to an exemption
from the registration requirements of the Securities Act and
applicable state securities laws.
This announcement is neither an offer to sell nor a solicitation
to buy any of these securities, and shall not constitute an offer,
solicitation or sale in any jurisdiction in which such an offer,
solicitation or sale would be unlawful.
About SiriusXM
Sirius XM Holdings Inc. (NASDAQ: SIRI) is the world's largest
radio company measured by revenue and has more than 30 million
subscribers. SiriusXM creates and offers commercial-free
music; premier sports talk and live events; comedy; news; exclusive
talk and entertainment, and a wide-range of Latin music, sports and
talk programming. SiriusXM is available in vehicles from
every major car company in the U.S. and on smartphones and other
connected devices as well as online at siriusxm.com. SiriusXM
radios and accessories are available from retailers nationwide and
online at SiriusXM. SiriusXM also provides premium traffic,
weather, data and information services for subscribers through
SiriusXM Traffic™, SiriusXM Travel Link, NavTraffic®,
NavWeather™. SiriusXM delivers weather, data and information
services to aircraft and boats through SiriusXM Aviation, SiriusXM
Marine™, Sirius Marine Weather, XMWX
Aviation™, XMWX Weather, and XMWX Marine™. In addition,
SiriusXM Music for Business provides commercial-free music to
a variety of businesses. SiriusXM holds a minority interest
in SiriusXM Canada which has approximately 2.7 million subscribers.
SiriusXM is also a leading provider of connected vehicles services
to major automakers, giving customers access to a suite of safety,
security, and convenience services including automatic crash
notification, stolen vehicle recovery assistance, enhanced roadside
assistance and turn-by-turn navigation.
This communication contains "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such statements include, but are not limited to,
statements about future financial and operating results, our plans,
objectives, expectations and intentions with respect to future
operations, products and services; and other statements identified
by words such as "will likely result," "are expected to," "will
continue," "is anticipated," "estimated," "believe," "intend,"
"plan," "projection," "outlook" or words of similar meaning.
Such forward-looking statements are based upon the current beliefs
and expectations of our management and are inherently subject to
significant business, economic and competitive uncertainties and
contingencies, many of which are difficult to predict and generally
beyond our control. Actual results and the timing of events
may differ materially from the results anticipated in these
forward-looking statements.
The following factors, among others, could cause actual
results and the timing of events to differ materially from the
anticipated results or other expectations expressed in the
forward-looking statements: our substantial competition,
which is likely to increase over time; our ability to attract and
retain subscribers, which is uncertain; consumer protection laws
and their enforcement; the unfavorable outcome of pending or future
litigation; the market for music rights, which is changing and
subject to uncertainties; our dependence upon the auto industry;
general economic conditions; the security of the personal
information about our customers; existing or future government laws
and regulations could harm our business; failure of our satellites
would significantly damage our business; the interruption or
failure of our information technology and communications systems;
our failure to realize benefits of acquisitions or other strategic
initiatives; rapid technological and industry changes; failure of
third parties to perform; harmful interference to our service from
new and existing wireless operations; our failure to comply with
FCC requirements; modifications to our business plan; our
indebtedness; our principal stockholder has significant influence
over our affairs and over actions requiring stockholder approval
and its interests may differ from interests of other holders of our
common stock; and impairment of our business by third-party
intellectual property rights. Additional factors that could
cause our results to differ materially from those described in the
forward-looking statements can be found in our Annual Report on
Form 10-K for the year ended December 31,
2015, which is filed with the Securities and Exchange
Commission (the "SEC") and available at the SEC's Internet site
(http://www.sec.gov). The information set forth
herein speaks only as of the date hereof, and we disclaim any
intention or obligation to update any forward looking statements as
a result of developments occurring after the date of this
communication.
Source: SiriusXM
Contact for SiriusXM:
Hooper Stevens
212-901-6718
hooper.stevens@siriusxm.com
Patrick Reilly
212-901-6646
patrick.reilly@siriusxm.com
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SOURCE Sirius XM Holdings Inc.