By Ronda Fears
Nashville, March 21 - Liberty Media Corp. sold $1.5 billion of 20-year exchangeables at 98.5 to yield 0.82% with a 52% initial conversion premium.
The 0.75% issue will convert, at Liberty's discretion; into AOL Time Warner Inc. shares, Liberty Class A common shares, cash or a combination of those.
The Rule 144A deal, via joint lead managers Banc of America Securities and JPMorgan, sold at the cheap end of indicative terms and was re-priced to 99 before pricing at 98.5, according to market sources. Talk had put the yield at 0.25% to 0.75% and the initial conversion premium at 52% to 57%.
Terms of the deal are:
Issuer: Liberty Media Corp.
| Issue: | Senior exchangeable notes
|
| Joint lead managers: | Banc of America Securities and JPMorgan
|
| Amount | $1.5 billion
|
| Greenshoe: | $250 million
|
| Maturity: | March 31, 2023
|
| Coupon: | 0.75%
|
| Price: | 98.5
|
| Yield: | 0.82%
|
| Conversion premium: | 52%
|
| Conversion price: | $17.416, based on AOL shares
|
| Conversion ratio: | 57.408, based on AOL shares
|
| Call: | Non-callable for 5 years
|
| Put: | in years 5, 10 and 15
|
| Expected ratings: | Moody's: Baa3
|
| S&P: BBB-
|
| Settlement: | March 26
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