Sirius to plan $500 million offering

Sirius XM Radio Inc., the junk-rated satellite-radio broadcaster, plans to raise $500 million by selling seven-year bonds.

The company intends to issue the debt, which can’t be called for three years, to fund general corporate purposes, including share repurchases and potential debt refinancings, according to a person familiar with the offering who asked not to be identified because terms aren’t set. The notes will have covenants common to investment-grade companies, the person said.

Sirius’s $400 million of 5.25 percent bonds due October 2022 were quoted yesterday at 103.8 cents on the dollar to yield 4.74 percent, according to prices compiled by Bloomberg. Those securities are rated B1 at Moody’s Investors Service and BB by Standard & Poor’s.