Sirius XM targets low to mid-3x debt ratio by the second half of 2025

By Devika Patel

Knoxville, Tenn., April 30 – Sirius XM Holdings Inc. plans to use discretionary cash flow towards reducing leverage back to management’s targeted range of the low to mid-3x area by the second half of 2025.

“SiriusXM ... ended the quarter with net debt to adjusted EBITDA of 3.3x,” chief financial officer Thomas Barry said on the New York-based audio entertainment company’s first quarter ended March 31 earnings conference call on Tuesday.

“As we approach the closure of the Liberty Media transaction [in the] next couple of months, we remain committed to [maintaining] a strong and flexible balance sheet with the leverage target in the low to mid-3x range.

“We will prioritize our substantial ongoing investments in the business and continuing our dividend with excess discretionary cash flow primarily used to reduce our leverage to the targeted range by the back half of 2025,” he said.

Cash and cash equivalents were $71 million as of March 31, compared to $216 million as of Dec. 31.

Long-term debt was $8,722,000,000 as of March 31, compared to $8.69 billion as of Dec. 31.

Current maturities of debt were $505 million as of March 31, unchanged compared to $505 million as of Dec. 31.

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