NEW YORK, April 11, 2014 /PRNewswire/ -- SiriusXM today
announced that the ratings on the 5.25% Senior Notes due 2022
issued by its subsidiary, Sirius XM Radio Inc., have been upgraded
to investment grade by both Standard & Poor's Ratings Services
and Moody's Investors Service.
"The upgrade of the ratings on the Notes to investment grade has
the effect of eliminating many of the financial covenants contained
in these Notes," said David Frear,
Chief Financial Officer, SiriusXM. "Most importantly, the
limitation on restricted payments contained in the indenture
governing the Notes is no longer applicable and these Notes no
longer constrain our share buyback activity," added Frear.
Sirius XM Radio Inc. and the guarantors of the Notes have
granted a first priority lien on substantially all of their assets
to the holders of the Notes. The liens securing the Notes are equal
and ratable to the liens granted on such assets to secure Sirius XM
Radio Inc.'s existing $1.25 billion
senior secured revolving credit facility. The liens securing the
Notes may be released upon the occurrence of certain events,
including but not limited to the repayment in full of the Notes or
any direct or indirect parent of Sirius XM Radio Inc. attaining an
investment grade rating from two out of three rating agencies,
subject to certain conditions.
As a result of the granting of liens to secure the Notes, the
ratings of the Notes have been upgraded by S&P from BB to BBB-
and by Moody's from B1 to Baa3. Pursuant to Section 4.15 of the
indenture governing the Notes (which has been filed as Exhibit 4.1
to Sirius XM Radio Inc.'s Current Report on Form 8-K filed on
August 14, 2012), certain covenants
in the Notes are no longer applicable.
About SiriusXM
Sirius XM Holdings Inc. (NASDAQ: SIRI) is the world's largest
radio broadcaster measured by revenue and has 25.6 million
subscribers. SiriusXM creates and broadcasts commercial-free
music; premier sports talk and live events; comedy; news; exclusive
talk and entertainment; and the most comprehensive Latin music,
sports and talk programming in radio. SiriusXM is available in
vehicles from every major car company in the U.S. and from
retailers nationwide as well as at shop.siriusxm.com. SiriusXM
programming is available through the SiriusXM Internet Radio App
for smartphones and other connected devices as well as online at
siriusxm.com. SiriusXM also provides premium traffic, weather, data
and information services for subscribers in cars, trucks, RVs,
boats and aircraft through SiriusXM Traffic™, SiriusXM Travel Link,
NavTraffic®, NavWeather™, SiriusXM Aviation, SiriusXM Marine™,
Sirius Marine Weather, XMWX
Aviation™, and XMWX Marine™. SiriusXM holds a minority
interest in SiriusXM Canada which has more than 2 million
subscribers.
On social media, join the SiriusXM community on Facebook,
Twitter, Instagram, and YouTube.
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 may differ materially from
the results anticipated in these forward-looking
statements.
The following factors, among others, could cause actual
results to differ materially from the anticipated results or other
expectations expressed in the forward-looking statements: our
competitive position versus other radio and audio entertainment
providers; our ability to attract and retain subscribers, which is
uncertain; our dependence upon the auto industry; general economic
conditions; failure of our satellites, which, in most cases, are
not insured; the interruption or failure of our information and
communications systems; the security of the personal information
about our customers; royalties we pay for music rights, which
increase over time; the unfavorable outcome of pending or future
litigation; our failure to realize benefits of acquisitions; rapid
technological and industry change; failure of third parties to
perform; changes in consumer protection laws and their enforcement;
failure to comply with FCC requirements and other government
regulations; and our indebtedness. 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,
2013, 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.
E-SIRI
Contact Information for Investors and Financial
Media:
Investors:
Hooper Stevens
212 901 6718
hooper.stevens@siriusxm.com
Media:
Patrick Reilly
212 901 6646
patrick.reilly@siriusxm.com
SOURCE Sirius XM Holdings Inc.