...CHICAGO (S&P Global Ratings) June 26, 2017-- S&P Global Ratings today assigned its '##' issue-level rating and '3' recovery rating to New York City-based satellite radio company Sirius XM Radio Inc.'s proposed $500 million senior unsecured notes due 2022 and $1 billion senior unsecured notes due 2027. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 55%) of principal in the event of a payment default. We expect that Sirius XM will use the proceeds from the note issuance to repay its $500 million 4.25% senior unsecured notes due 2020, $600 million 5.75% notes due 2021, and a portion of the revolving credit facility. Pro forma for the proposed senior note issuance and its recent investment in Pandora Inc., Sirius' leverage is roughly 3.5x. We expect leverage will remain in the 3x-4x range at the current rating level, with healthy growth prospects offsetting any debt-financed shareholder returns. Over the past four years, Sirius has returned...
