Liberty Interactive LLC ("Liberty"), a subsidiary of Liberty Interactive Corporation (Nasdaq: LINTA, LINTB, LVNTA, LVNTB), announced a semi-annual payment to the holders of its 3.5% Senior Exchangeable Debentures due 2031 (the "Debentures"). 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, Liberty made an extraordinary distribution of $162.6160 per $1,000 original principal amount of Debenture arising from Freescale Semiconductor’s going private transaction. On June 20, 2012, Liberty made an extraordinary distribution of $184.0960 per $1,000 original principal amount of Debenture arising from the acquisition of Motorola Mobility Holdings, Inc (“MMI”) by Google.
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 3.5% per annum of the original principal amount of the Debentures. Below is a detail of the amount of the payment being made on the Debentures, its allocation between payment of interest and repayment of principal and the revised adjusted principal amount resulting from the payment, per $1,000 original principal amount of the Debentures:
January 15, 2014BeginningAdjusted Principal
January 15, 2014Ending AdjustedPrincipal