Liberty Media talks $400 million 30-year exchangeables on Sirius XM at 1.875%-2.125%, up 27.5%-30%

By Abigail W. Adams

Portland, Me., March 1 – Liberty Media Corp. plans to price $400 million of exchangeable senior debentures due 2048 after the market close Thursday with price talk for a coupon of 1.875% to 2.125% and an exchange premium of 27.5% to 30%, according to a market source.

The notes are convertible into either Sirius XM Holdings Inc. common stock, Liberty’s series C Liberty Sirius XM common stock, or a combination of both forms of stock and cash at the company’s option.

BNP Paribas Securities Corp., Citibank and UBS Securities LLC are the joint bookrunners for the Rule 144A deal, which carries a greenshoe of $60 million.

The debentures are non-callable until April 7, 2023 when they become freely callable. The notes have a put option which is exercisable after April 7, 2023.

Proceeds will be used to repurchase Liberty SiriusXM common stock, for possible future acquisitions and investments and for general corporate purposes.

Liberty Media is an Englewood, Colo.-based media conglomerate. Sirius XM Holdings is the parent company for satellite radio company Sirius XM Radio Inc. Liberty Media owns approximately 70% of Sirius XM Holdings common stock.

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