Liberty Media greenshoe ups exchangeable notes to $1.15 billion

By Marisa Wong

Los Angeles, Sept. 14 – The initial purchasers of Liberty Media Corp.’s 2.375% senior debentures due 2053 exchangeable for Live Nation Entertainment Inc. stock exercised their $150 million over-allotment option in full. The total offering of $1.15 billion of debentures closed on Thursday, according to a press release.

As previously reported, Liberty Media priced an upsized $1 billion of the exchangeable debentures after the market close on Sept. 6 at par with a coupon of 2.375% and an initial conversion premium of 30%.

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.

Before being upsized, 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 will be used to repurchase $858 million principal amount of Liberty Media’s 0.5% exchangeable debentures due 2050 through privately negotiated transactions for an aggregate cost of about $918 million. The $858 million repurchase amount includes $713 million of previously announced proposed buybacks.

Remaining proceeds will be used to settle exchanges or redeem the 2050 notes, which become freely callable on or after Sept. 1, 2024 and also putable on Sept. 1, 2024.

The 2050 exchangeable notes had $920 million outstanding as of June 30.

Liberty Media is an Englewood, Colo.-based media, communications and entertainment company.

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