Despite a roiling recession, plenty of money is now dancing on the sidelines.  Warner Music Group (WMG) recently discovered that through a shrewd notes offering, and now, Sirius XM Radio is the one getting oversubscribed. 

An initial $350 million offering of senior secured notes, structured through subsidiary XM Satellite Radio Inc., has now ballooned to $525.8 million - and potentially more.  "The offering size was increased today from $350,000,000 in response to strong investor demand," the company indicated. 

Sounds like a great vote of confidence, though the new debt will be used to pay off older debt - including high-yield loans from savior Liberty Media Corp.  Shares of Sirius XM Radio (SIRI) gained 15.19 percent to 45.5 cents in Thursday trading.

Story by news analyst Alexandra Osorio.  More details on the loan, as supplied directly from XM Satellite Radio, Inc.:

^{_{The notes, which were offered pursuant to Rule 144A and Regulation S under the Securities Act of 1933 (the "Securities Act"), will bear interest at an annual rate of 11.25%. The price to investors will be 95.093% of the principal amount of the notes. The company will receive gross proceeds of $499,951,448 from the sale of the notes before deducting the initial purchaser's commissions and estimated offering expenses. The notes will be guaranteed by XM Satellite Radio Holdings Inc. and certain subsidiaries.}}

^{_{XM will use the net proceeds from the offering to repay all amounts outstanding under its amended and restated credit agreement; to replace the $150 million second-lien credit agreement with Liberty Media Corporation, which will be terminated upon the closing of the offering; and to refinance or repay other debt of XM and XM Holdings. The balance of the net proceeds, if any, will be used for general corporate purposes.}}

^{_{The notes have not been registered under the Securities Act, or any state securities laws, and may not be offered or sold in the United States absent registration, except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.}}

^{_{This announcement is neither an offer to sell nor a solicitation to buy any of these securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful.}}