Liberty pays out on 4% exchangeables, lowering adjusted par amount

By Susanna Moon

Chicago, May 15 - Liberty Interactive LLC, a subsidiary of Liberty Interactive Corp., said the principal amount was adjusted on its 4% senior exchangeable debentures due 2029.

The adjustment was a result of the company's semiannual payment and additional distribution to the holders of the exchangeables, according to a company press release.

Under the note terms, the original principal amount of the debentures is adjusted in an amount equal to each extraordinary distribution made to holders of the debentures.

After that, the adjusted principal amount is further reduced on each successive semiannual interest payment date to the extent necessary to cause the semiannual interest payment to represent the payment of an annualized yield of 4% of the adjusted principal amount.

The adjustment to the principal amount of the debentures takes effect on the second succeeding interest payment date after the payment of the extraordinary distribution.

To date, there has been one extraordinary distribution to noteholders, which was on Aug. 7, 2013, when Liberty made an extraordinary distribution of $63.0960 per $1,000 original principal amount due to the merger between Sprint Nextel Corp. and SoftBank Corp.

Adjustments to the principal amount of the debentures do not affect the amount of the semiannual payments received by noteholders, which will continue to be a rate equal to 4% per year of the original principal amount of the debentures.

The amount paid on the debentures, its allocation between payment of interest and repayment of principal and the revised adjusted principal amount resulting from the payment per $1,000 original principal amount of the debentures is as follows:

• May 15, 2014 beginning adjusted principal is $936.904;

• The total payment is $20.00;

• Interest is $18.7381;

• Additional payment of principal is $1.2619; and

• May 15, 2014 ending adjusted principal is $935.6421.

Liberty is also making an additional distribution of $1.08 per debenture, attributable to the quarterly cash dividends paid by CenturyLink Inc. on Dec. 6, 2013 and March 21, 2014.

The semiannual interest payment and additional distribution are expected to be made on May 15 to holders of record on May 1.

Liberty Interactive owns interests in electronic retailing, media, communications and entertainment businesses. It is based in Englewood, Colo.

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