Liberty pays quarterly interest on 0.75%, 1% exchangeables due 2043

By Susanna Moon

Chicago, Jan. 3 – Liberty Interactive Corp. subsidiary Liberty Interactive LLC said it paid quarterly interest to holders of its $789,517 outstanding 0.75% senior exchangeable debentures due 2043 and its $633,216 outstanding 1% senior exchangeable debentures due 2043.

For the 0.75% exchangeables, the payout was $1.875 per $1,000 original principal amount of debentures on Monday, according to a company notice.

Holders of the 1% exchangeables received quarterly interest of $2.50 per $1,000 original principal amount of debentures on Monday, according to a separate company announcement.

The record date for each payout is Dec. 15.

Under the indentures for each series, the original principal amount is reduced by an amount equal to each additional distribution made to holders attributable to an extraordinary distribution that is made on reference shares.

After that, the adjusted principal amount for each series is further reduced on each quarterly interest payment date so that the quarterly interest payment represents an annualized yield of 0.75% or 1% of the adjusted par amount, depending on the series of exchangeables, the release noted.

So far, for the 0.75% exchangeables, Liberty has made an extra payout attributable to an extraordinary distribution made on reference shares. On June 16, Liberty said it made an additional distribution of $614.4332 per $1,000 original principal amount attributable to the extraordinary cash distribution made to former holders of common stock of Time Warner Cable, Inc. on May 18, in connection with the mergers involving Charter Communications, Inc. and Time Warner Cable.

The principal amount of the 0.75% exchangeables was adjusted to $383.2605 from $384.4147.

Liberty said it also made an additional distribution of $2.2009 per 0.75% debenture, attributable to the regular quarterly dividends paid by Time Warner Inc. of $0.4025 and by Time Inc. of $0.1900, each on Dec. 15.

For the 1% exchangeables, Liberty has made one extraordinary distribution on March 19, 2015 of $134.5800 per $1,000 original principal amount resulting 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.

The principal amount of the 1% exchangeables was adjusted to $863.0472 from $863.3887.

Liberty also paid an additional distribution of $2.2879 per 1% debenture, which is attributable to the portion of the quarterly dividend paid by HSN on Dec. 20 in excess of $0.18 per share.

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

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