By Rebecca Melvin and Angela McDaniels
Tacoma, Wash., Oct. 11 - Liberty Media Corp. priced $900 million of 1.375% 10-year convertible senior notes, according to a company news release.
The deal was upsized from $500 million and priced at the tight end of revised coupon talk of 1.375% to 1.5% and at the wide end of 17.5% to 22.5% premium talk. The deal was initially talked at a 1.5% to 2% coupon and a 17.5% to 22.5% premium.
The Rule 144A offering has a $100 million greenshoe, which was increased from $75 million.
The active bookrunners were Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC. The joint bookrunners are BofA Merrill Lynch, Barclays, 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, according to the market source.
The notes will be convertible under certain circumstances based on the trading prices of the company's series A common stock. All conversions will be settled in cash only.
Liberty Media entered into cash convertible note hedge and warrant transactions with counterparties including some of the initial purchasers.
The proceeds of the convertibles and warrants will be used to fund the hedge transactions, to pay down a portion of the company's outstanding margin loans and for general corporate purposes.
Englewood, Colo.-based in Liberty Media owns interests in electronic retailing, media, communications and entertainment businesses.
| Issuer: | Liberty Media Corp.
|
| Issue: | Cash convertible senior notes
|
| Amount: | $900 million, upsized from $500 million
|
| Greenshoe: | $100 million, upsized from $75 million
|
| Maturity: | Oct. 15, 2023
|
| Active bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC
|
| Joint bookrunners: | BofA Merrill Lynch, Barclays, 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., Wells Fargo Securities LLC
|
| Coupon: | 1.375%
|
| Price: | Par
|
| Yield: | 1.375%
|
| Conversion premium: | 22.5%
|
| Conversion price: | $178.95
|
| Call option: | Non-callable
|
| Put option: | No
|
| Call spread: | Yes
|
| Price talk: | 1.375%-1.5%, up 17.5%-22.5%, revised from 1.5%-2%, up 17.5%-22.5%
|
| Distribution: | Rule 144A
|
| Pricing date: | Oct. 10
|
| Settlement date: | Oct. 17
|
| Stock symbol: | Nasdaq: LMCA
|
| Stock price: | $146.08 at close Oct. 10
|
| Market capitalization: | $17.6 billion
|
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