SiriusXM Canada Announces Pricing of $200 Million 5.625% Senior Unsecured Notes
Proceeds to be used, in part, to redeem its 9.75% $130.8 million senior notes
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TORONTO, April 17, 2014 /CNW/ - SiriusXM Canada Holdings Inc. ("SiriusXM Canada" or the "Company") (TSX: XSR), parent of SiriusXM Canada Inc., today announced that it has priced an aggregate principal amount of $200 million of senior unsecured notes, due 2021 ("the Notes") on a private placement basis ("the Offering"). The Notes will be offered through a syndicate of underwriters co-led by TD Securities and National Bank Financial and will also include BMO Capital Markets, Canaccord Genuity Corp., CIBC World Markets and RBC Capital Markets.
The Notes will bear interest at the rate of 5.625% per annum, payable semi-annually in arrears. Subject to the satisfaction of customary closing conditions, the Offering is expected to close on April 23, 2014. Upon completion of the offering, the net proceeds of the offering will be used to fund the redemption of all of the Company's $130.8 million outstanding 9.75% senior notes due 2018 (plus accrued and unpaid interest, premiums and fees) and the remainder will be used for general corporate purposes, which may include a return of capital to shareholders, acquisition financing, reinvesting in the business or capital expenditures.
"Our strong track record of operational performance combined with favorable market conditions make this an ideal time to refinance our debt," said Michael Washinushi, Chief Financial Officer, SiriusXM Canada. "We expect that the new lending terms should result in interest expense savings on an annualized basis and additional flexibility on our balance sheet to pursue our strategic initiatives."
The Company expects that the Notes will receive a rating of BB- from Standard & Poor's Rating Services prior to or at closing of the Offering.
The Notes will be sold in Canada on a private placement basis pursuant to certain prospectus exemptions.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes in any jurisdiction, nor shall there be any sale of these Notes in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration and qualification under the securities laws of any such jurisdiction.
Certain statements included above may be forward-looking in nature. Such statements can be identified by the use of forward-looking terminology such as "expects," "may," "will," "should," "intend," "plan," or "anticipates" or the negative thereof or comparable terminology, or by discussions of strategy. Forward-looking statements include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance, or other statements that are not statements of fact, including with respect to the payment of dividends in the future and future performance. Although SiriusXM Canada believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct, including with respect to the timing and completion of the Offering, the use of proceeds of the Offering, the redemption of outstanding notes and savings in connection with such Offering and redemption. SiriusXM Canada's forward-looking statements are expressly qualified in their entirety by this cautionary statement. SiriusXM Canada makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made, except as required by applicable law. Additional information identifying risks and uncertainties is contained in SiriusXM Canada Holdings Inc.'s filings with the Canadian securities regulators, available at www.sedar.com.
About SiriusXM Canada
SiriusXM Canada Holdings Inc. (TSX: XSR) operates as SiriusXM Canada. SiriusXM Canada, with approximately 2.4 million subscribers, is one of the country's leading audio entertainment company and broadcasts more than 120 satellite radio channels featuring premier sports, news, talk, entertainment and commercial-free music. SiriusXM Canada offers an array of content from the most recognized news and entertainment brands as well as every major sport including the NHL, NFL and MLB.
SiriusXM programming is available on a variety of devices including pre-installed and after-market radios in cars, trucks and boats, smartphones and mobile devices, and consumer electronics products for homes and offices. SiriusXM programming is also available online at www.siriusxm.ca and on Apple and Android-powered mobile devices.
SiriusXM Canada has partnerships with every major automaker and its radio products are available at more than 3,000 retail locations nationwide. To find out more about SiriusXM Canada (TSX: XSR), visit our website at www.siriusxm.ca.
SOURCE Sirius XM Canada Holdings Inc.For further information:
416-815-0700 ext 237