Qurate’s Liberty unit lowers par amount of 3.5% convertibles

By Taylor Fox

New York, Jan. 15 – Qurate Retail, Inc. said the principal amount of subsidiary Liberty Interactive LLC’s 3.5% exchangeable senior debentures due 2031 was adjusted following payment of a semiannual interest payment to the holders as of Jan. 1, according to a news release.

The principal amount was lowered to $488.4359 from $497.2343.

The amount of the payment is $17.50 per $1,000 of original amount of debentures, and the excess regular cash dividend amount distribution is $4.1552 per debenture.

As previously reported, under the indenture for the debentures, the original principal amount of the debentures was reduced in an amount equal to each extraordinary additional distribution made to holders of the debentures.

Thereafter, the adjusted principal amount is further reduced on each successive semiannual interest payment date to the extent necessary to cause the semiannual interest payment to represent the payment of an annualized yield of 3.5% of the adjusted principal amount.

The latter adjustment, to the extent it is made by reason of a particular extraordinary additional distribution that results in a reduction to the principal amount of the debentures, takes effect on the second succeeding interest payment date after the payment of that extraordinary additional distribution.

To date, Liberty has made two extraordinary additional distributions to holders. On Jan. 10, 2007, Liberty made an extraordinary additional distribution of $162.6160 per $1,000 original principal amount arising from Freescale Semiconductor’s going-private transaction. On June 20, 2012, Liberty made an extraordinary additional distribution of $184.0960 per $1,000 original principal amount arising from the acquisition of Motorola Mobility Holdings, Inc. by Google.

Reductions to the principal amount of the debentures do not affect the amount of the semiannual interest payments received by holders of the debentures, which will continue to be a rate equal to 3.5% per annum.

Liberty also announced the payment to holders of the debentures as of Jan. 15 of an excess regular cash dividend of $4.1552 per debenture, which is attributable to the regular quarterly dividends paid by Motorola Solutions Inc. of $0.64 per share Oct. 15 and $0.71 per share on Jan. 15.

Englewood, Colo.-based Qurate Retail operates and owns interests in digital commerce 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.