Liberty Media uses cash to fund Dutch auction tender for 5.7% notes

By Lisa Kerner

Charlotte, N.C., May 4 - Liberty Media LLC is using cash on hand to fund its recently announced tender offer for up to $400 million principal amount of its $802.5 million of outstanding 5.7% senior notes due 2013.

A Liberty Media spokesperson called the offer "an effective use of cash."

The offer will end at midnight ET on May 28.

As previously reported, Liberty Media will pay $1,010 to $1,045 for each $1,000 principal amount, including a $30 premium for notes tendered by 5 p.m. ET on May 14, the early tender date.

Liberty Media said under the modified Dutch auction, holders will specify a bid price for the minimum payment they are willing to receive for tendered notes. Holders who tender notes without specifying a bid price will be deemed to have specified $1,010 per $1,000 principal amount.

The company will pay accrued interest up to the settlement date, which is expected to be June 2.

Notes may be withdrawn any time prior to 5 p.m. ET on May 14.

Barclays Capital Inc. (800 438-3242 or collect 212 528-7581) is the dealer manager. Global Bondholder Services Corp. (866 873-7700 or for banks and brokers 212 430-3774) is the information agent and depositary.

Liberty Media is an intermediate holding company of Liberty Media Corp., which is a holding company based in Englewood, Colo. It owns interests in electronic retailing, media, communications and entertainment businesses.

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