Liberty Media makes semiannual payment on 3.5% exchangeables due 2031

By Angela McDaniels

Tacoma Wash., July 15 - Liberty Media LLC said it will make a semiannual payment to the holders of its 3.5% senior exchangeable debentures due 2031.

Of the $17.50 payment, $14.4497 is interest and $3.0503 is an additional payment of principal.

The payment was expected to be made Wednesday and reduces the principal of each exchangeable to $822.6482 from $825.6985.

The debentures are exchangeable for Freescale Semiconductor, Inc. stock. The original reduction in principal amount resulted from an extraordinary distribution of cash paid to bondholders on Jan. 10, 2007 in connection with the acquisition of Freescale Semiconductor by a group of private equity firms.

At that time, Liberty Media announced that the adjusted principal amount of the exchangeables would be further reduced on each semiannual interest payment date to the extent necessary to cause the semiannual payment on that date to represent the payment by Liberty Media, in arrears, of an annualized yield of 3.5% of the adjusted principal amount of the exchangeables.

The company said the adjustments will not affect the amount of the semiannual payments received by holders of the debentures, which will continue to equal 3.5% of the original principal amount per year.

Liberty Media is an intermediate holding company of Liberty Media Corp., which is a holding company based in Englewood, Colo., that owns interests in electronic retailing, media, communications and entertainment businesses.

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