set plans Tuesday to sell $250 million of 10-year senior notes to refinance some costlier debt.
The New York satellite radio broadcaster said it would place the notes with qualified institutional and offshore buyers. The company said it will use proceeds to retire $63 million worth of shorter-dated notes with double-digit interest rates, and for general corporate purposes.
The two-player satellite radio sector has attracted growth-hungry investors who have been able to see beyond the massive cash-burning stage of development to a future sky's-the-limit mass-market opportunity. Automakers have helped push the broader appeal by putting satellite radios in new cars with free trial subscriptions.
Sirius and rival
have nearly split the big carmakers down the middle, with each of the major players aligning with one or the other broadcaster.
Though the competition is heated, that hasn't translated to consumer price cuts. In fact, last month XM
raised its monthly subscription price by 30% to $12.95, matching Sirius' current offer.
On Tuesday, both stocks slid as investors await the latest rate hike from the
. Sirius dropped 6 cents to $5.33, and XM slid 37 cents to $28.49.