Liberty Interactive to pay extraordinary distribution on 0.75% exchangeables due 2043

By Wendy Van Sickle

Columbus, Ohio, Feb. 9 – Liberty Interactive Corp. subsidiary Liberty Interactive LLC said it will make an extraordinary additional distribution to holders of its 0.75% senior exchangeable debentures due 2043.

Holders as of Feb. 14 will receive an additional distribution of $11.9399 per debenture, which is attributable to the cash consideration of $18.50 per share paid to former holders of common stock of Time Inc. on Jan. 31 in connection with the acquisition of Time by Meredith Corp., according to a press release.

The payment is expected to be made on March 1.

Principal adjustment

On March 1, the principal amount of the debentures will be adjusted to $366.6821 from $378.622 per debenture.

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.

To date, Liberty has made one previous 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.

Reference share adjustment

As a result of the acquisition of Time, the reference shares attributable to each $1,000 original principal of debentures now consist of a basket of 3.1648 shares of class A common stock of Charter and 5.1635 shares of common stock of Time Warner, Inc.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.