By Rebecca Melvin
New York, Aug. 12 – Liberty Media Corp. priced an upsized $444.6 million of senior debentures exchangeable for common shares of Time Warner Inc. to yield 2.25% with an initial exchange premium of 30%, according to market sources.
The deal was increased from a planned $425 million.
Pricing of the Rule 144A deal came at the midpoint of talk, which was for a 2% to 2.5% coupon and a 27.5% to 32.5% premium.
The 30-year paper was priced via bookrunners Morgan Stanley & Co. LLC and Citigroup Global Markets Inc.
The debentures are non-callable until Oct. 5, 2021. Investors can put the bonds on Oct. 5, 2021. Once exchanged, Liberty has the option to deliver Time Warner stock, cash or a combination thereof.
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.
| Issuer: | Liberty Media Corp.
|
| Exchange entity: | Time Warner Inc.
|
| Issue: | Exchangeable senior debentures
|
| Amount: | $444.6 million
|
| Maturity: | Sept. 30, 2046
|
| Bookrunners: | Morgan Stanley & Co. LLC, Citigroup Global Markets Inc.
|
| Coupon: | 2.25%
|
| Price: | Par
|
| Yield: | 2.25%
|
| Exchange premium: | 30%
|
| Exchange price: | $104.55
|
| Call: | Non-callable until Oct. 5, 2021
|
| Put: | On Oct. 5, 2021
|
| Net share settlement: | Yes
|
| Price talk: | 2%-2.5%, up 27.5%-32.5%
|
| Distribution: | Rule 144A
|
| Pricing date: | Aug. 11
|
| Settlement date: | Aug. 17
|
| Underlying stock symbol: | NYSE: TWX
|
| Stock price: | $146.08 at close Aug. 11
|
| Market capitalization: | $62.75 billion
|
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