Liberty Media to sell $425 million 30-year senior debentures exchangeable for Time Warner stock

By Stephanie N. Rotondo

Seattle, Aug. 11 – Liberty Media Corp. is privately offering $425 million of senior debentures exchangeable for common shares in Time Warner Inc., according to a press release published early Thursday.

Morgan Stanley & Co. LLC is running the books.

Price talk on the Rule 144A deal is 2% to 2.5%, a market source reported. The initial exchange premium is expected to be 27.5% to 32.5%.

Once exchanged, Liberty has the option to deliver Time Warner Stock, cash or a combination thereof.

The debentures mature Sept. 30, 2046 and become putable Oct. 5, 2021. The notes are callable on or after Oct. 5, 2021.

Proceeds will be used to provide additional operating funds and for general corporate purposes, including to make acquisitions.

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

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