By Abigail W. Adams
Portland, Me., Nov. 28 – Liberty Media Corp. priced $350 million of exchangeable debentures due 2048 prior to the market open on Wednesday with a discounted reoffer price of 99.5, a coupon of 2.25% and an initial exchange premium of 25%, according to a market source.
An earlier story gave an incorrect price for the notes.
Pricing came wide of initial talk for a coupon of 1.25% to 1.75% and an initial exchange premium of 27.5% to 32.5%, according to a market source.
The notes are exchangeable into shares of Live Nation Entertainment, Inc.
UBS Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Mizuho Securities USA Inc. and Morgan Stanley & Co. LLC are the joint bookrunners for the Rule 144A offering, which carries a downsized greenshoe of $35 million.
The initial size of the greenshoe was $52.5 million.
Liberty may deliver series C Liberty Formula One common stock, series C Liberty Sirius XM common stock, or any other class of Liberty’s publicly traded common stock that meets certain criteria upon an exchange.
The debentures will be settled in cash, reference shares and/or settlement shares, or a combination of both at the company’s option.
The notes are putable on Dec. 1, 2021. The notes are callable after Dec. 1, 2021.
Proceeds will be used to repay a margin loan secured by Live Nation shares with any remaining proceeds to be used for investment activities and general corporate purposes.
Liberty Media is an Englewood, Colo.-based media, communications and entertainment company. Liberty Media’s Live Nation subsidiary produces concerts and sells tickets online.
| Issuer: | Liberty Media Corp.
|
| Exchange entity: | Live Nation Entertainment, Inc.
|
| Securities: | Exchangeable senior debentures
|
| Amount: | $350 million
|
| Greenshoe: | $35 million
|
| Maturity: | Dec. 31, 2048
|
| Bookrunners: | UBS Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Mizuho Securities USA Inc. and Morgan Stanley & Co. LLC
|
| Coupon: | 2.25%
|
| Price: | 99.5
|
| Conversion premium: | 25%
|
| Conversion price: | $66.28
|
| Conversion rate: | 15.0886
|
| Call options: | Callable after Dec. 1, 2021
|
| Put options: | Putable on Dec. 1, 2021
|
| Pricing date: | Nov. 28
|
| Settlement date: | Dec. 3
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 1.25% to 1.75% and an initial exchange premium of 27.5% to 32.5%
|
| Stock symbol: | NYSE: LYV
|
| Stock price: | $53.02 at market close Nov. 27
|
| Market capitalization: | $11.11 billion
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
