Liberty Interactive pays interest on convertibles, cutting par amount

By Susanna Moon

Chicago, Aug. 15 – Liberty Interactive LLC, a subsidiary of Liberty Interactive Corp., said it paid semiannual interest and an additional distribution to the holders of its 3.75% senior exchangeable debentures due 2030.

Interest was $18.75 per $1,000 original principal amount of debentures, and the additional distribution was $0.62056 per debenture.

Under the note terms, the original principal amount of the debentures was adjusted in an amount equal to each extraordinary distribution made to holders of the debentures, according to a company press release.

After that, the adjusted principal amount is further reduced on each successive semiannual interest payment date to the extent necessary to cause the semiannual interest payment to represent the payment of an annualized yield of 3.75% of the adjusted principal amount, the company said.

The latter adjustment, to the extent it is made by reason of a particular extraordinary distribution that results in an adjustment to the principal amount of the debentures, takes effect on the second succeeding interest payment date after the payment of that extraordinary distribution.

To date, there has been one extraordinary distribution to holders of the debentures.

On Aug. 7, 2013, Liberty made an extraordinary distribution of $46.1258 per $1,000 original principal amount of debenture arising from the merger between Sprint Nextel Corp. and SoftBank Corp.

Adjustments to the principal amount of the notes do not affect the amount of the semiannual interest payments received by noteholders, which will continue to be a rate equal to 3.75% per year of the original principal amount of the debentures.

The revised adjusted principal amount will be $953.0093 per $1,000 original principal amount of the notes.

Liberty said it is also making an additional distribution of $0.62056 per debenture, attributable to the quarterly cash dividends paid by CenturyLink Inc. on March 21 and June 20. The additional distribution will not result in an adjustment to the principal amount of the debentures, the company noted.

The semiannual interest payment and additional distribution were scheduled to be made on Aug. 15 to holders of record on Aug. 1.

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

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