Qurate Retail Announces Semi-Annual Interest Payment & Excess Regular Cash Dividend Amount Distribution on 3.5% Senior Exchan...
January 15 2021 - 4:15PM
Business Wire
Qurate Retail, Inc. (“Qurate Retail”) (Nasdaq: QRTEA, QRTEB,
QRTEP) today announced the payment of a semi-annual interest
payment and an excess regular cash dividend amount distribution to
the holders as of January 1, 2021 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 $4.1552 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:
January 15, 2021 Beginning
Adjusted Principal
Payment
Interest
Additional Payment of
Principal
January 15, 2021 Ending Adjusted
Principal
$497.2343
$17.50
$8.7016
$8.7984
$488.4359
An excess regular cash dividend amount distribution of $4.1552
per Debenture will be paid, attributable to the quarterly dividends
paid by Motorola Solutions Inc. of $0.64 per share on October 15,
2020 and $0.71 per share on January 15, 2021. 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 January 15,
2021 to holders of record of the Debentures on January 1, 2021.
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/20210115005513/en/
Courtnee Chun 720-875-5420
Qurate Retail (NASDAQ:QRTEB)
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