Qurate Retail Announces Semi-Annual Interest Payment & Excess Regular Cash Dividend Amount Distribution on 3.5% Senior Exchan...
July 15 2020 - 4:30PM
Business Wire
Qurate Retail, Inc. (“Qurate Retail”) (Nasdaq: QRTEA, QRTEB)
today announced the payment of a semi-annual interest payment and
an excess regular cash dividend amount distribution to the holders
as of July 1, 2020 of the 3.5% Senior Exchangeable Debentures due
2031 (the "Debentures") issued by its direct wholly-owned
subsidiary, Liberty Interactive LLC (“LI LLC”). The amount of the
payment is $17.50 per $1,000 original principal amount of
Debentures, and the excess regular cash dividend amount
distribution is $3.7870 per Debenture.
Under the Indenture for the Debentures, the original principal
amount of the Debentures is adjusted 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 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 Additional
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 Additional
Distribution.
To date, there have been two Extraordinary Additional
Distributions to holders of the Debentures. On January 10, 2007, LI
LLC made an Extraordinary Additional Distribution of $162.6160 per
$1,000 original principal amount of the Debentures arising from
Freescale Semiconductor’s going private transaction. On June 20,
2012, LI LLC made an Extraordinary Additional Distribution of
$184.0960 per $1,000 original principal amount of the Debentures
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 of the Debentures resulting from
such payment, per $1,000 original principal amount of the
Debentures:
July 15, 2020 Beginning Adjusted
Principal
Payment
Interest
Additional Payment of
Principal
July 15, 2020 Ending Adjusted
Principal
$505.8814
$17.50
$8.8529
$8.6471
$497.2343
LI LLC is also making an excess regular cash dividend amount
distribution of $3.7870 per Debenture, attributable to the
quarterly dividends paid by Motorola Solutions Inc. of $0.64 per
share on both April 15, 2020 and July 15, 2020. The excess regular
cash dividend amount distribution will not result in an adjustment
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 July 15,
2020 to holders of record of the Debentures on July 1, 2020.
About Qurate Retail, Inc.
Qurate Retail, Inc. operates and owns interests in a broad range
of digital commerce businesses. Qurate Retail, Inc.’s businesses
and assets consist of QVC (and its subsidiaries, including HSN),
Zulily and the Cornerstone Brands (collectively, the Qurate Retail
Group) as well as various green energy and other investments.
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version on businesswire.com: https://www.businesswire.com/news/home/20200715005110/en/
Courtnee Chun 720-875-5420
Qurate Retail (NASDAQ:QRTEB)
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