Liberty Media plans $500 million 10-year convertibles to yield 1.5%-2%, up 17.5%-22.5%

By Rebecca Melvin

New York, Oct. 10 - Liberty Media Corp. launched an offering of $500 million of senior unsecured convertible notes, which it planned to price late Thursday. The deal was talked to yield 1.5% to 2%, with an initial conversion premium of 17.5% to 22.5%, according to a market source.

The Rule 144A offering has a $75 million greenshoe and is being sold via active bookrunners Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC. The joint bookrunners are Merrill Lynch, Pierce, Fenner & Smith Inc., Barclays Capital Inc., BNP Paribas Securities Corp, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets, LLC, RBS Securities Inc. and Wells Fargo Securities, LLC.

The bonds are non-callable for life with no puts.

Proceeds are expected to be used to pay the net cost of a call spread, to pay down margin loans and for general corporate purposes.

Settlement will be cash only.

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

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