Liberty Media talks $350 million exchangeables due 2048 to yield 1.25%-1.75%, up 27.5%-32.5%

By Abigail W. Adams

Portland, Me., Nov. 26 – Liberty Media Corp. plans to price $350 million of exchangeable debentures due 2048 after the market close on Tuesday with price 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 debentures 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 greenshoe of $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, according to a company news release.

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.

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