Liberty Interactive pays distribution to 3.75% exchangeables’ holders

By Wendy Van Sickle

Columbus, Ohio, Aug. 17 – Liberty Interactive Corp. subsidiary Liberty Interactive LLC made an additional distribution to the holders of its 3.75% senior exchangeable debentures due 2030 on Monday, according to a company news release.

The amount of the additional distribution was $0.62056 per debenture.

The additional distribution is attributable to the quarterly cash dividends paid by CenturyLink Inc. on March 20 and June 16. It did not result in an adjustment to the principal amount of the debentures.

Holders also received the regular semiannual interest payment of $18.75 per $1,000 original principal amount of debentures.

Principal adjustment

Liberty Interactive also made the semi-annual interest payment of $18.75 per $1,000 principal amount.

The interest payment resulted in the adjustment of the principal amount on Aug. 15 to $950.3612 per debenture from $951.2306.

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 3.75% 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 has been one extraordinary distribution to holders of the debentures. On Aug. 7, 2013, Liberty made an extraordinary distribution of $46.1258 per $1,000 original principal amount of debentures arising from the merger transaction between Sprint Nextel Corp. and SoftBank Corp.

Adjustments to the principal amount of the debentures do not affect the amount of the semiannual interest payments received by holders.

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

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