Sirius Sets Refinancing

It gets a loan from Morgan Stanley.
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Sirius (SIRI) - Get Report got a $250 million senior secured term loan commitment from Morgan Stanley Senior Funding.

The facility will mature in five and a half years and will have covenants substantially similar to those under the New York-based pay radio broadcaster's existing 9.63% senior notes. The proceeds will be used for general corporate purposes. Morgan Stanley is acting as the sole lead arranger and has committed to providing the entire principal amount of the facility, subject to customary closing conditions.

Sirius had $263 million in cash and investments and $1.06 billion in debt as of March 31.

"This transaction takes advantage of favorable market conditions and significantly strengthens our balance sheet," said David Frear, executive vice president and CFO of Sirius.