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Liberty Interactive to price debentures exchangeable into Charter Communications stock
By Rebecca Melvin
New York, Aug. 16 – Liberty Interactive LLC, a subsidiary of Liberty Media Corp., plans to sell senior debentures exchangeable for Charter Communications Inc. common stock in a private offering, according to a news release late Tuesday.
The Rule 144A debentures will be exchangeable at the option of holders during specified periods. Upon an exchange of debentures, the company may deliver Charter Communications stock, cash or a combination of stock and cash.
Proceeds will be used to repay up to $450 million outstanding under a margin loan facility recently entered into by its wholly owned special purpose subsidiary LV Bridge, LLC; to repurchase its outstanding 0.75% exchangeable senior debentures due 2043 and to satisfy its exchange obligation in cash for holders that tender the 2043 debentures. Any remaining net proceeds will be used for general corporate purposes, including to pay interest on the debentures.
The debentures, as well as the associated cash proceeds, will be attributed to the Liberty Ventures Group.
On Friday, Liberty Media priced $444.6 million of senior debentures exchangeable for common shares of Time Warner Inc., to yield 2.25% with an initial exchange premium of 30%, according to market sources.
The Rule 144A deal was initially talked at $425 million in size. Pricing came at the midpoint of talk, which was for a 2% to 2.5% coupon and 27.5% to 32.5% premium.
The 30-year paper, which matures Sept. 30, 2046, was priced via bookrunners Morgan Stanley & Co. LLC and Citigroup Global Markets Inc.
Liberty Media is an Englewood, Colo.-based media and communications company.
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