Sirius XM Radio Inc.'s Proposed $750 Million Senior Unsecured Notes Rated 'BB' (Recovery Rating: '3')

CHICAGO (Standard&Poor's) May 18, 2016--S&P Global Ratings today assigned its 'BB' issue-level rating and '3' recovery rating to New York City-based satellite radio company Sirius XM Radio Inc.'s proposed $750 million senior unsecured notes due 2026. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; lower half of the range) of principal in the event of a payment default. We expect that Sirius XM will initially use the proceeds from the note issuance to repay $600 million of revolving credit facility borrowings and for general corporate purposes, which could include funding Sirius XM Canada Holdings Inc.'s recapitalization later this year. Sirius XM is increasing its stake in Sirius XM Canada from 37% to 70% for $275

...CHICAGO (Standard & Poor's) May 18, 2016--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 $750 million senior unsecured notes due 2026. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; lower half of the range) of principal in the event of a payment default. We expect that Sirius XM will initially use the proceeds from the note issuance to repay $600 million of revolving credit facility borrowings and for general corporate purposes, which could include funding Sirius XM Canada Holdings Inc.'s recapitalization later this year. Sirius XM is increasing its stake in Sirius XM Canada from 37% to 70% for $275 million in a transaction that will also take Sirius XM Canada from a publicly traded company to a private company. Our corporate credit rating on Sirius XM incorporates our expectation that, despite our expectation for debt-financed share...

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