SiriusXM Raising $1B In Debt Sale, Says Pandora Advertising Improved Over Last Few Weeks

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Satellite radio powerhouse and Pandora parent SiriusXM plans to raise $1 billion in a private debt offering and will use proceeds along with cash to redeem previous debt and interest obligations.

In a filing with the SEC, announcing the sale the comany noted the onoing tough environment created by the COVID-19 virus on its business, which depends in large part on new cars sales and advertising, which have both slumped. But it noted that while ad hours on Pandora “decreased markedly following the implementation of stay-at-home orders in mid-March,” they have steadily improved over the last several weeks “to modest declines on a year over year basis consistent with the declining trends the Pandora service has experienced for several years.”

It also said that based on available information, it believe the SiriusXM will report positive net new self-pay subscribers for the quarter ending June 30. (The second quarter is not yet complete and our actual results may differ, it cautioned)

The company said it believes it has sufficient cash and cash equivalents, as well as debt capacity, to cover our estimated short-term and long-term funding
needs, including amounts to construct, launch and insure replacement satellites and strategic opportunities. As of June 5, it had
approximately $224.6 million of cash on hand and $1.75 billion was available for future borrowing under our revolving credit facility.

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