Liberty Interactive pays distribution to holders of 0.75% exchangeables

By Wendy Van Sickle

Columbus, Ohio, Oct. 2 – Liberty Interactive Corp. subsidiary Liberty Interactive LLC said it made an additional distribution to holders of its 0.75% senior exchangeable debentures due 2043.

Holders as of Sept. 15 received an additional distribution of $2.1041 per debenture, according to a press release.

The additional distribution is attributable to the regular quarterly dividends paid on Sept. 15 by Time Warner Inc. of $0.4025 and by Time Inc. of $0.04. Payments of additional distributions attributable to regular cash dividends do not result in a reduction to the principal amount of the debentures, the company noted.

Holders also received on Monday a quarterly interest payment of $1.875 per $1,000 original principal amount of debentures.

Principal adjustment

On Sept. 30, the principal amount of the debentures was adjusted to $379.7849 per debenture from $380.9456.

Under the indenture for the debentures, the original principal amount of the debentures is reduced in an amount equal to each extraordinary distribution made to holders of the debentures. After that, the adjusted principal amount is further reduced on each successive quarterly interest payment date to the extent necessary so that the quarterly interest payment represents the payment of an annualized yield of 0.75% of the adjusted principal amount.

This latter adjustment, to the extent it is made through a particular extraordinary distribution that results in a reduction 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, Liberty has made one extraordinary distribution to holders of the debentures. On June 16, 2016, Liberty made an extraordinary distribution of $614.4332 per $1,000 original principal amount, attributable to the cash distribution made on May 18, 2016 to former holders of Time Warner Cable, Inc. common stock, in connection with the mergers involving Charter Communications, Inc. and Time Warner Cable.

Reductions to the principal amount of the debentures do not affect the amount of the quarterly interest payments, which will continue to be at a rate of 0.75% per year.

As of Sept. 30, 2,007 debentures remained outstanding in the aggregate adjusted principal amount of $762,228, including Monday’s quarterly interest payment, according to the release.

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

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