Liberty Announces Adjustment to 3.125% Senior Exchangeable Debentures Due
Additional Distribution a result of AOL Special Dividend
ENGLEWOOD, Colo. -- January 14, 2013
Liberty Interactive LLC (“Liberty”), a subsidiary of Liberty Interactive
Corporation (NASDAQ: LINTA/LINTB and LVNTA/LVNTB ) announced a cash
distribution to the holders of its 3.125% Senior Exchangeable Debentures due
in 2023 (the “Debentures”). This distribution is the result of AOL, Inc.’s
special dividend of $5.15 per share paid on December 14, 2012.
Each Debenture is exchangeable into a basket of securities consisting of
19.1360 common shares of Time Warner Entertainment (“TWX”), 4.8033 common
shares of Time Warner Cable (“TWC”) and 1.7396 common shares of AOL, Inc.
Pursuant to the indenture governing the Debentures, this distribution is
considered an extraordinary distribution of cash. As a result, each Debenture
holder will be entitled to receive a cash payment of $8.9589 per bond. The
distribution is expected to be made on January 15, 2013 to holders of record
on December 31, 2012.
Also pursuant to the indenture, on any date that we pay or make an additional
distribution to the holders of the debentures that is attributable to an
extraordinary distribution on the reference shares, the original principal
amount of each debenture will be reduced by the amount of the additional
distribution that is paid or made with respect to that debenture. Thereafter,
the adjusted principal amount will be further reduced on each successive
semi-annual interest payment date to the extent necessary to cause the
semi-annual interest payment on that date to represent the payment by Liberty,
in arrears, of an annualized yield of 3.125% of the adjusted principal amount
of the debentures. An adjustment for purposes of ensuring that Liberty does
not pay an annualized yield of more than 3.125% of the adjusted principal
amount of the debentures that is necessary by the payment of an additional
distribution to holders of the debentures will take effect on the second
succeeding interest payment date after the payment of that distribution. We
will issue a press release each time an adjustment is made to the adjusted
principal amount of the debentures.
Payment Date Beginning Adjusted Extraordinary Ending Adjusted
Principal per Bond Distribution Principal per Bond
1/15/2013 $1000.00 $8.9589 $991.0411
The adjustments described above will not affect the amount of the semi-annual
payments received by holders of the debentures, which will continue to be a
rate of interest equal to 3.125% per annum of the original principal amount of
About Liberty Interactive LLC
Liberty Interactive LLC is a wholly owned subsidiary of Liberty Interactive
Corporation and owns interests in a broad range of electronic retailing,
media, communications, and entertainment businesses.
Liberty Interactive Corporation
Courtnee Ulrich, 720-875-5420
Press spacebar to pause and continue. Press esc to stop.