By Abigail W. Adams
Portland, Me., Sept. 7 – Liberty Media Corp. priced an upsized $1 billion of exchangeable senior debentures due 2053 for Live Nation Entertainment stock after the market close on Wednesday at par with a coupon of 2.375% and an initial conversion premium of 30%, according to a company press release.
Pricing came toward the cheap end of talk for a coupon of 2% to 2.5% and at the cheap end of talk for an initial exchange premium of 30% to 35%, according to a market source.
J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and Citigroup Global Markets Inc. were bookrunners for the Rule 144A offering, which carries an upsized greenshoe of $150 million.
The initial size of the offering was $900 million with a greenshoe of $135 million.
The notes are non-callable until Sept. 30, 2028 when they become freely callable.
The notes are putable on Sept. 30, 2028 or upon a change of control.
Net proceeds are expected to be $985 million.
Net proceeds will be used to repurchase $713 million in principal of Liberty Media’s 0.5% exchangeable debentures due 2050 in privately negotiated transactions.
Remaining proceeds will be used to settle exchanges or redeem the notes which become freely callable on or after Sept. 1, 2024 and are also putable on Sept. 1, 2024.
The 0.5% exchangeable notes had $920 million outstanding as of June 30.
Liberty Media is an Englewood, Colo.-based media, communications and entertainment company.
| Issuer: | Liberty Media Corp.
|
| Amount: | $1 billion
|
| Greenshoe: | $150 million
|
| Issue: | Exchangeable senior debentures for Live Nation Entertainment stock
|
| Maturity: | Sept. 30, 2053
|
| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and Citigroup Global Markets Inc.
|
| Coupon: | 2.375%
|
| Price: | Par
|
| Yield: | 2.375%
|
| Exchange premium: | 30%
|
| Exchange price: | $104.91
|
| Exchange rate: | 9.5320
|
| Call options: | Freely callable on or after Sept. 30, 2028
|
| Put options: | Sept. 30, 2028 or upon a change of control
|
| Pricing date: | Sept. 6
|
| Settlement date: | Sept. 14
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 2% to 2.5% and initial exchange premium of 30% to 35%
|
| Stock symbol: | NYSE: LYV
|
| Stock price: | $80.70 at market close Sept. 6
|
| Market capitalization: | $18.45 billion
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