Sirius XM Radio Inc. 's Proposed $1 Billion Senior Unsecured Notes Due 2030 Rated 'BB' (Recovery Rating: '3')

NEW YORK (S&P Global Ratings) June 8, 2020--S&P Global Ratings today assigned its 'BB' issue-level rating and '3' recovery rating to New York-based satellite radio operator Sirius XM Radio Inc.'s proposed $1 billion senior unsecured notes due 2030. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 50%) recovery for lenders in the event of a payment default. Sirius XM plans to use the proceeds from the proposed notes to call and repay its 5.375% senior unsecured notes due 2025 ($1 billion outstanding). Our 'BB' issuer credit rating and stable outlook on Sirius XM are unchanged because the proposed transaction will not affect its net leverage. We expect the company's net leverage will remain in the mid-3x

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