The owner of Sirius XM and the Atlanta Braves baseball team, one-third owner of LiveNation, and minority investor in both Time Warner and Viacom has priced and agreed to sell to initial buyers some $444.6 million of its 2.25% exchangeable senior debentures due 2046 in a private offering set to conclude August 17.
Liberty Media Corp. is supporting the private debt with its shares in Time Warner Inc.
Upon an exchange of debentures, Liberty, at its option, may deliver Time Warner common stock, cash, or a combination of the two. The number of Time Warner shares attributable to a debenture represents an initial exchange price of approximately $104.55 per share.
Approximately 4.25 million shares of Time Warner common stock are attributable to the debentures, Liberty says. Interest will be payable quarterly on March 31, June 30, September 30 and December 31 of each year, commencing December 31, 2016.
The debentures may be redeemed by Liberty, in whole or in part, on or after October 5, 2021. Holders of the debentures also have the right to require Liberty to purchase their debentures on October 5, 2021. The redemption and purchase price will generally equal to 100% of the adjusted principal amount of the debentures plus accrued and unpaid interest.
Liberty expects to use the net proceeds of the offering to provide additional funds for operations and for general corporate purposes, including to make acquisitions.
The debentures, as well as the associated cash proceeds, will be attributed to the Liberty Media Group.
The private debt offering comes as Liberty Media Corp. prepares for its annual meeting of stockholders, set for August 23 at 10:15am ET.
Meanwhile, Liberty CEO Greg Maffei is set to speak at the Goldman Sachs Communacopia 2016 event, set for September 22. Maffei’s presentation will commence at 11:20am ET.