The recent announcement by Sirius XM Holdings that it "will redeem all of its outstanding 5.875% Senior Notes due
2020" has raised a few questions by investors. Since August of 2012 the company has usedits cash flow and issued $6.15 billion dollars of new debt in order to
- retire its older, higher interest debt,
- to acquire the Connected Vehicle Services business from Agero,
- increase its economic stake in Sirius XM Canada,
- to make capital investments, and
- to fund its $8 billion dollar share repurchase program.
In doing do, the company has increased its leverage ratio to 3.5x. During the recent earnings call CFO David Frear noted
