UPDATE 2-Sirius XM sells $800 mln in notes to repay debt

Fri Mar 12, 2010 6:53pm EST

* Expands size of debt offer

* Proceeds to pay down 2012 and 2013 debt (Updates total offering, adds details on interest rate, Liberty Media Corp buy and JP Morgan involvement)

NEW YORK, March 12 (Reuters) - Sirius XM Radio Inc (SIRI.O) expanded and priced an offering of senior notes on Friday, raising $800 million to pay off debt that comes due earlier.

It said on Friday it sold $800 million of senior notes due in 2015 via private placement.

Sirius said the issuance of the senior notes would allow it to redeem notes due in 2013 and pay fees and expenses of the offering, and prepay in full all borrowings under a senior secured term loan that matures in 2012. The new notes will have an annual interest rate of 8.75 percent.

The size of the deal was increased from an originally planned $550 million. JPMorgan Chase & Co (JPM.N) was the sole bookrunner.

Sirius has bolstered its books and restructured its debt following an investment last year from John Malone's Liberty Media Corp LINTA.O LCAPA.O LSTZA.O that gave Malone a 40 percent equity stake in the company.

Liberty Media Corp intends to buy $150 million of those notes. [ID:nN12629669] (Reporting by Franklin Paul in New York and Ian Sherr in San Francisco, editing by Gerald E. McCormick)