Liberty Interactive pays distribution to holders of 4% exchangeables

By Marisa Wong

Madison, Wis., May 15 – Liberty Interactive Corp. subsidiary Liberty Interactive LLC announced it will make an additional distribution to the holders of its 4% senior exchangeable debentures due 2029 on Friday.

The amount of the additional distribution is $0.8489 per debenture, according to a company news release.

The additional distribution is attributable to the quarterly cash dividends paid by CenturyLink Inc. on Dec. 5 and March 20. The additional distribution will not result in a further adjustment to the principal amount of the debentures, which was adjusted on May 15.

Holders also received the regular semiannual interest payment of $20 per $1,000 original principal amount of debentures.

Principal adjustment

On May 15, the principal amount was adjusted to $933.0420 per debenture from $934.3549.

Under the indenture for the debentures, the original principal amount of the debentures is adjusted in an amount equal to each extraordinary distribution made to holders of the debentures. Thereafter, 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 4% of the adjusted principal amount.

This 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 $63.0960 per $1,000 original principal amount of debentures arising from the merger transaction between Sprint Nextel Corp. and SoftBank Corp.

Adjustments to the principal amount of the debentures do not affect the amount of the semiannual interest payments received by holders, which will continue to be at a rate of 4% per year.

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

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