Liberty Media regroups stock underlying 1.375% convertibles due 2023

By Susanna Moon

Chicago, April 18 – Liberty Media Corp. said it entered into a supplemental indenture to its 1.375% cash convertible notes due 2023 after a recapitalization last Friday.

Liberty said on Nov. 12 that it planned to attribute to the Liberty Media group all of its businesses, assets and liabilities, including the 1.375% convertibles.

In the change, each outstanding share of Liberty’s common stock was reclassified into and exchanged for the same series of three new tracking stocks, according to a notice.

The restated charter reclassified and exchanged each outstanding share of series A common stock for 0.10 of a share of series A Liberty Braves common stock, 1.0 share of series A Liberty Sirius common stock and 0.25 of a share of series A Liberty Media common stock, with cash issued in lieu of fractional shares.

As a result, the notes will be convertible into cash based on the product of the conversion rate and the basket of tracking stocks.

As previously announced, the company adjusted the conversion rate for its 1.375% convertibles after the spinoff of subsidiary Liberty Broadband Corp. on Nov. 4.

The conversion rate was changed to 21.0859 shares of Liberty’s series A common stock per $1,000 principal amount of convertibles, up from 15.7760 shares.

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

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