Liberty Interactive makes payments on 3.5% exchangeables due 2031

By Angela McDaniels

Tacoma, Wash., July 15 – Liberty Interactive LLC, a subsidiary of Liberty Interactive Corp., made a semiannual interest payment to the holders of its 3.5% senior exchangeable debentures due 2031 in the amount of $17.50 per $1,000 original principal amount of debentures, according to a company news release.

Of the $17.50 payment, $9.9735 was interest and $7.5265 was an additional payment of principal.

The semiannual payment was made on Friday and reduced the adjusted principal amount of each debenture to $562.3869 from $569.9134.

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 3.5% 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 have been two extraordinary distributions to holders of the debentures. On Jan. 10, 2007, Liberty made an extraordinary distribution of $162.6160 per $1,000 original principal amount in connection with Freescale Semiconductor’s going-private transaction. On June 20, 2012, Liberty made an extraordinary distribution of $184.0960 per $1,000 original principal amount in connection with the acquisition of Motorola Mobility Holdings, Inc. by Google.

Adjustments to the principal amount of the debentures do not affect the amount of the semiannual interest payments received by holders of the debentures, which continue to be 3.5% per year of the original principal amount of the debentures.

Liberty also made an excess regular cash dividend amount distribution of $1.3675 per debenture, attributable to the quarterly dividends paid by Motorola Solutions Inc. on April 15 and July 15. Payments of excess regular cash dividend amounts do not result in adjustments to the principal amount of the debentures.

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

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