Qurate Retail Announces Semi-Annual Interest Payment & Excess Regular Cash Dividend Amount on 3.5% Senior Exchangeable Debent...
July 16 2018 - 04:30PM
Business Wire
Qurate Retail, Inc. (“Qurate Retail”) (Nasdaq: QRTEA,
QRTEB) today announced a semi-annual interest payment to the
holders of its 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.
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, LI LLC made an
extraordinary 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 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, 2018BeginningAdjusted
Principal
Payment Interest
AdditionalPayment ofPrincipal
July 15, 2018Ending AdjustedPrincipal
$539.0079 $17.50 $9.4326
$8.0674 $530.9405
LI LLC is also making an excess regular cash dividend amount
distribution of $2.5247 per Debenture, attributable to the
quarterly dividends paid by Motorola Solutions Inc. of $0.52 per
share on both April 13, 2018 and July 13, 2018. 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 July 16,
2018 to holders of record of the Debentures on July 1, 2018.
About Qurate Retail, Inc. (formerly Liberty Interactive
Corporation)
Qurate Retail, Inc. operates and owns interests in a broad range
of digital commerce businesses. Qurate Retail, Inc.’s businesses
and assets consist of its subsidiaries QVC, Inc., HSN, Inc., and
zulily, llc (collectively, the Qurate Retail Group) as well as its
interests in ILG and FTD, among other things.
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Qurate Retail, Inc.Courtnee Chun, 720-875-5420
Qurate Retail (NASDAQ:QRTEA)
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