March 15, 2010 (FinancialWire) — Sirius XM Radio (NASDAQ: SIRI) has priced an offering of $800 million of senior notes due 2015.

The notes will bear interest at an annual rate of 8.75%. The price to investors will be 100% of the principal amount of the notes. The company will receive gross proceeds of $800 million from the sale of the notes before deducting the initial purchasers’ commissions and estimated offering fees and expenses.

Sirius XM said it will use the net proceeds from the offering to redeem all of its outstanding 9-5/8% senior notes due 2013, including premiums and accrued and unpaid interest thereon; to prepay in full all of its borrowings under its senior secured term loan that matures in 2012; and to pay fees and expenses related to the offering.

The satellite radio firm plans to use any remaining net proceeds for general corporate purposes.

New York-based Sirius XM Radio offers its subscribers commercial-free music channels, sports, news, talk, entertainment, and traffic and weather.

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