Liberty Interactive announced a semi-annual payment and additional distribution to the holders of its 4.0% Senior Exchangeable Debentures due 2029. The amount of the payment is $20.00 per $1,000 original principal amount of Debentures, and the amount of the additional distribution is $0.8489 per Debenture.
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 4.0% 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 has been one extraordinary distribution to holders of the Debentures. On August 7, 2013, Liberty made an extraordinary distribution of $63.0960 per $1,000 original principal amount of Debenture arising from the merger transaction between Sprint Nextel Corporation and SoftBank Corp.
Adjustments to the principal amount of the Debentures do not affect the amount of the semi-annual payments received by holders of the Debentures, which will continue to be a rate equal to 4.0% per annum of the original principal amount of the Debentures.
Liberty is also making an additional distribution of $0.8489 per Debenture, attributable to the quarterly cash dividends paid by CenturyLink Inc. on 12/6/13 and 3/21/14.
The semi-annual interest payment and additional distribution are expected to be made on May 15, 2014 to holders of record of the Debentures on May 1, 2014.