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Liberty Media greenshoe lifts 2.25% convertibles to $475 million
By Marisa Wong
Los Angeles, Aug. 15 – Liberty Media Corp. announced that the underwriters of its offering of 2.25% convertible notes due Aug. 15, 2027 exercised their $50 million over-allotment option in full, bringing the total deal size to $475 million.
The company had priced an upsized $425 million of the five-year convertible notes after the market close on Aug. 9 at par with a coupon of 2.25% and an initial conversion premium of 30%, as previously reported.
Pricing came at the rich end of talk for a coupon of 2.25% to 2.75% and at the midpoint of talk for an initial conversion premium of 27.5% to 32.5%, according to a market source.
The notes will be convertible into Liberty Media’s series C Liberty Formula One common stock and will be attributed to the Liberty Formula One tracking group.
Credit Suisse Securities (USA) LLC (lead left), Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC were bookrunners for the Rule 144A offering.
The initial size of the offering was $375 million. The greenshoe was not upsized.
The notes are non-callable until Aug. 20, 2025 and then subject to a 130% hurdle.
They are putable upon a fundamental change.
The notes will be settled in cash, stock or a combination of both at the company’s option.
Proceeds will be used to repurchase about $209 million of Liberty Media’s 1% cash convertible notes due 2023 in privately negotiated transactions. The 1% cash convertible notes had $240 million outstanding as of June 30.
Liberty Media is an Englewood, Colo.-based owner and operator of media, communications and entertainment businesses.
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