Liberty Announces Semi-Annual Interest Payment and Excess Regular Cash Dividend Amount on 3.5% Senior Exchangeable Debentures Due 2031
Business Wire 13-Jan-2017 4:15 PM
ENGLEWOOD, Colo.--(BUSINESS WIRE)-- Liberty Interactive LLC ("Liberty"), a subsidiary of Liberty Interactive Corporation (Nasdaq: QVCA, QVCB, LVNTA, LVNTB), announced a semi-annual interest payment to the holders of its 3.5% Senior Exchangeable Debentures due 2031 (the "Debentures"). The amount of the payment is $17.50 per $1,000 original principal amount of Debentures.
Under the Indenture for the Debentures, the original principal amount of the Debentures is adjusted in an amount equal to each extraordinary distribution made to holders of the Debentures. Thereafter, the adjusted principal amount is further reduced on each successive semi-annual interest payment date to the extent necessary to cause the semi-annual interest payment to represent the payment of an annualized yield of 3.5% of the adjusted principal amount. This latter adjustment, to the extent it is made by reason of a particular extraordinary distribution that results in an adjustment to the principal amount of the Debentures, takes effect on the second succeeding interest payment date after the payment of that extraordinary distribution.
To date, there have been two extraordinary distributions to holders of the Debentures. On January 10, 2007, Liberty made an extraordinary distribution of $162.6160 per $1,000 original principal amount of Debenture arising from Freescale Semiconductors going private transaction. On June 20, 2012, Liberty made an extraordinary distribution of $184.0960 per $1,000 original principal amount of Debenture arising from the acquisition of Motorola Mobility Holdings, Inc. by Google.
Adjustments to the principal amount of the Debentures do not affect the amount of the semi-annual interest payments received by holders of the Debentures, which will continue to be a rate equal to 3.5% per annum of the original principal amount of the Debentures. Below is a detail of the amount of the semi-annual interest payment being made on the Debentures, its allocation between payment of interest and repayment of principal and the revised adjusted principal amount resulting from such payment, per $1,000 original principal amount of the Debentures:
January 15, 2017 BeginningAdjusted Principal Payment Interest AdditionalPayment ofPrincipal January 15, 2017 Ending AdjustedPrincipal
$562.3869 $17.50 $9.8418 $7.6582 $554.7287
Liberty is also making an excess regular cash dividend amount distribution of $1.6831 per Debenture, attributable to the quarterly dividends paid by Motorola Solutions Inc. on 10/14/16 and 1/13/17. Payments of excess regular cash dividend amounts do not result in adjustments to the principal amount of the Debentures.
The semi-annual interest payment and excess regular cash dividend amount distribution are expected to be made on January 17, 2017 to holders of record of the Debentures on January 1, 2017.
About Liberty Interactive LLC
Liberty Interactive LLC is an intermediate subsidiary of Liberty Interactive Corporation, owning interests in a broad range of electronic retailing, media, communications, and entertainment businesses.
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Liberty Interactive Corporation Courtnee Chun, 720-875-5420
Source: Liberty Interactive Corporation