Company Update: Sirius XM Holdings Inc (NASDAQ:SIRI) – Sirius XM Radio Inc. Prices Offering of $1 Billion of 5.375% Senior Notes due 2026

[PR Newswire] – NEW YORK, May 18, 2016 /PRNewswire/ — SiriusXM announced today that its subsidiary, Sirius XM Radio Inc., priced an offering of $1.0 billion of Senior Notes due 2026. The notes are to be sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and outside the United States in compliance with Regulation S of the Securities Act. The notes will bear interest at an annual rate of 5.375%. The price to investors will be 100% of the principal amount of the notes. The company will receive gross proceeds of $1.0 billion from the sale of the notes before deducting the initial purchasers’ commissions and estimated offering fees and expenses. The company intends to use the remaining net proceeds from the offering for general corporate purposes, which may include, from time to time and as market conditions warrant, the repayment, repurchase, redemption, defeasance or tender of its outstanding indebtedness, including any future borrowings under its revolving credit facility, dividends or loans to SiriusXM, its parent corporation, to fund share repurchases of SiriusXM common stock and the payment of the cash consideration for, and fees related to, SiriusXM’s previously announced recapitalization of Sirius XM Canada Holdings Inc. Pending application of these amounts, the company currently expects to maintain any excess amount as cash on hand. Read more on this. Sirius XM Holdings Inc. (SIRI) , valued at $19.29B, began trading this morning at $3.89. Looking at today’s market, SIRI one day range is $3.85 to $3.90 and has traded between $3.29 and $4.20 over the past 12 months. SIRI shares are currently priced at 25.93x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s 18.96x earnings multiple. In a review of the consensus earnings estimate this quarter, 15 sell-side analysts are looking at $0.04 per share, which would be $0.02 better than the year-ago quarter and a $0.01 sequential increase. In looking at the bigger picture, the full-year EPS estimate of $0.15 would be a $0.06 improvement when compared to the previous year’s annual results. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $1.22 Billion. If realized, that would be a 7.96% increase over the year-ago quarter. Recently, Gabelli & Co Initiated SIRI at Buy (Sep 18, 2015). Previously, Wunderlich upgraded SIRI from Hold to Buy. When considering if perhaps the stock is under or overvalued, the average price target is $4.60, which is 18.25% above where the stock opened this morning. See more in (NASDAQ:SIRI) Similar Articles: Stock Update: Sirius XM Holdings Inc (NASDAQ:SIRI) – SiriusXM Announces Sports and Entertainment Programming for Super Bowl Week Company Update: Sirius XM Holdings Inc (NASDAQ:SIRI) – SiriusXM Announces Expanded Coverage for 2016 PGA Merchandise Show Market Update: Sirius XM Holdings Inc (NASDAQ:SIRI) – SiriusXM Presents Extensive Live Concert Lineup on New Year’s Eve