Liberty Media holders put back $486.1 million of 0.75% debentures

By Jennifer Chiou

New York, March 25 - Liberty Media Corp. announced that holders put back $486.1 million of its $1.75 billion of 0.75% exchangeable senior debentures due 2023.

Liberty Media said that it will buy back the debentures on March 31 at par plus accrued interest to March 30.

Holders had until 5 p.m. ET on March 24 to surrender their securities.

Liberty Media previously said it has elected to pay cash for any surrendered debentures, noting that it will borrow under a financing facility to finance the repurchase.

On March 20, the company said that it intended to modify the terms of the debentures, including the deferral of its ability to call the securities until April 5, 2013.

Other changes included the company surrendering its right to elect to pay holders, in whole or in part, with shares of Time Warner Inc. common stock upon maturity or redemption. Instead, Liberty Media would make payments in cash.

In addition, Liberty Media previously said that it plans to increase the interest on the debentures to 3.125% from 0.75% for all interest periods beginning on or after March 30.

The company added that the intended modifications are being reviewed with the trustee under the indenture.

On Feb. 25, the company notified holders that they may put back their securities.

The debentures are exchangeable at the option of the holders for the value of the underlying reference shares, which are currently shares of Time Warner common stock, at a rate of 57.4079 shares per $1,000 principal amount.

When it announced the put option, Liberty Media added that it may consider undertaking measures to induce holders to not surrender their debentures for repurchase.

Liberty Media is a holding company based in Englewood, Colo., that owns interests in electronic retailing, media, communications and entertainment businesses.

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