Liberty Interactive pays distribution to holders of 3.5% exchangeables

By Wendy Van Sickle

Columbus, Ohio, Jan. 16 – Liberty Interactive Corp. subsidiary Liberty Interactive LLC said it made an additional distribution to the holders of its 3.5% senior exchangeable debentures due 2031.

The amount of the additional distribution was $2.2617 per debenture, according to a company news release.

The additional distribution is attributable to the quarterly cash dividends paid by Motorola Solutions Inc. on Oct. 13 and Jan. 12. The additional distribution will not result in a further adjustment to the principal amount of the debentures.

Holders also received the regular semiannual interest payment of $17.50 per $1,000 original principal amount of debentures.

Principal adjustment

On Jan. 15, the principal amount was adjusted to $539.0079 per debenture from $546.9365.

Under the indenture for the debentures, the original principal amount of the debentures is reduced by 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 semiannual interest payment date to the extent necessary so that the semiannual interest payment represents the payment of an annualized yield of 3.5% of the adjusted principal amount.

This latter adjustment, to the extent it is made through 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 of debentures arising from Freescale Semiconductor’s going private transaction. On June 20, 2012, Liberty made an extraordinary distribution of 184.0960 per $1,000 original principal amount of debentures arising from 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, which will continue to be at a rate of 3.5% per year.

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

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