Liberty Media buys back $750 million of Liberty Capital exchangeables

By Angela McDaniels

Tacoma, Wash., April 7 - Liberty Media Corp. retired $400 million of Liberty Capital's 4% exchangeable debentures due 2029 and $350 million of its 3.75% exchangeable debentures due 2030 last week, according to a company news release.

The company paid $187.5 million for the exchangeables. Of the purchase price, $37.5 million was existing cash collateral.

Liberty Media also terminated swap arrangements that reference the exchangeables with no additional payment.

Including this payment, the total cash used to retire the $750 million of exchangeables and swaps referencing them was $503 million, of which $315 million was paid to settle swap arrangements that were settled in November.

Liberty Media said it has now settled all of its swaps that reference its own or third-party debt.

These actions were taken to reduce risk and strengthen the balance sheet, the release stated.

The company said it took other action in the first quarter to reduce its counterparty risk exposure, including drawing down $1.64 billion against derivative positions related to its Sprint Nextel/Embarq equity position and unwinding the remaining derivative position related to its LodgeNet Interactive holdings.

Englewood, Colo.-based Liberty Media owns interests in electronic retailing, media, communications and entertainment businesses.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.