Liberty Interactive pays distribution on 3.5% exchangeables due 2031, adjusts principal amount

By Jennifer Chiou

New York, July 13 - Liberty Interactive Corp. subsidiary Liberty Interactive LLC announced a semiannual payment of $17.50 per $1,000 original principal amount of its 3.5% senior exchangeable debentures due 2031.

As of July 13, the adjusted principal amount of each debenture in the original principal amount of $1,000 is $619.0964.

The distribution follows Google Inc.'s acquisition of Motorola Mobility Holdings Inc. on May 22 for $40 per share in cash. With this extraordinary distribution, the first related principal adjustment will occur on the interest payment scheduled for Jan. 15, 2013, according to a news release.

Following payment on Friday, the aggregate outstanding adjusted principal amount of the debentures is $371.5 million.

Under the note terms, the principal amount of the notes is to be reduced by the amount of each extraordinary cash distribution on the debentures.

As reported, the adjusted principal amount will be further reduced on each successive semiannual interest payment date to the extent needed to cause the interest payment on that date to represent the payment by Liberty of an annualized yield of 3.5% of the adjusted principal amount of the notes.

The company said that the reductions to the principal amount of the debentures will not affect the amount of the semiannual interest payments received by noteholders, which will continue to be 3.5% per year.

Englewood, Colo.-based Liberty Interactive owns interests in electronic retailing, media, communications and entertainment businesses.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.