Liberty Interactive pays distribution to holders of 1% exchangeables

By Wendy Van Sickle

Columbus, Ohio, March 31 – Liberty Interactive Corp. subsidiary Liberty Interactive LLC made a regular additional distribution to the holders of its 1% senior exchangeable debentures due 2043 on Thursday, according to a company news release.

The amount of the additional distribution was $2.2879 per debenture.

The additional distribution is attributable to the quarterly cash dividends paid by HSN, Inc. on March 23. It did not result in an adjustment to the principal amount of the debentures.

Holders also received the regular semiannual interest payment of $2.50 per $1,000 original principal amount of debentures.

Principal adjustment

On March 31, the principal amount was adjusted to $864.0692 per debenture from $864.4082.

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 quarterly interest payment date to the extent necessary to cause the quarterly interest payment to represent the payment of an annualized yield of 1% 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 March 19, 2015, Liberty made an extraordinary distribution of $134.58 per $1,000 original principal amount of debentures arising from the declaration and payment by HSN, Inc. of a special cash dividend of $10.00 per share to shareholders of record as of Feb. 9, 2015.

Adjustments to the principal amount of the debentures do not affect the amount of the semiannual interest payments received by holders.

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

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