ENGLEWOOD, Colo.--(BUSINESS WIRE)--
Qurate Retail, Inc. ("Qurate Retail") (Nasdaq: QRTEA, QRTEB) announces
an Extraordinary Additional Distribution to the holders of the 0.75%
Exchangeable Senior Debentures due 2043 (the "Debentures") issued by its
direct wholly-owned subsidiary, Liberty Interactive LLC ("LI LLC"). The
amount of the Extraordinary Additional Distribution is $277.5381 per
$1,000 original principal amount of Debentures (a "Debenture"), which is
attributable to the cash consideration of $53.75 per share paid to
former holders of common stock of Time Warner Inc. ("TWX") on June 15,
2018 in connection with AT&T Inc.'s ("AT&T") acquisition of TWX
("AT&T/TWX Acquisition"). As of March 30, 2018, 1,116 Debentures
remained outstanding in an aggregate adjusted principal amount of
$407,917. After giving effect to the Extraordinary Additional
Distribution, the aggregate adjusted principal amount of Debentures
outstanding will be approximately $98,184.
LI LLC expects to pay the Extraordinary Additional Distribution on July
16, 2018, to holders of record of the Debentures on June 29, 2018. Under
the indenture governing the Debentures, the original principal amount of
the Debentures is reduced in an amount equal to each Extraordinary
Additional Distribution that is made to holders of the Debentures.
Thereafter, the adjusted principal amount is further reduced on each
successive quarterly interest payment date to the extent necessary to
cause the quarterly interest payment to represent the payment of an
annualized yield of 0.75% of the adjusted principal amount. This latter
adjustment will take effect on September 30, 2018, the second succeeding
interest payment date after the payment of the Extraordinary Additional
To date, LI LLC has made two prior Extraordinary Additional
Distributions to holders of the Debentures. On June 16, 2016, LI LLC
made an Extraordinary Additional Distribution of $614.4332 per $1,000
original principal amount of the Debentures attributable to the cash
distribution made to former holders of common stock of Time Warner
Cable, Inc. ("TWC") on May 18, 2016, in connection with the mergers
involving Charter Communications, Inc. and TWC. On March 1, 2018, LI LLC
made an Extraordinary Additional Distribution of $11.9399 per $1,000
original principal amount of Debentures attributable to the cash
consideration of $18.50 per share paid to former holders of common stock
of Time Inc. ("Time") on January 31, 2018, in connection with the
acquisition of Time by Meredith Corporation.
Reductions to the principal amount of the Debentures do not affect the
amount of the quarterly interest payments received by holders of the
Debentures, which will continue to be a rate equal to 0.75% per annum of
the original principal amount of the Debentures.
As a result of the Extraordinary Additional Distribution being made on
the Debentures in connection with the AT&T/TWX Acquisition, the adjusted
principal amount of the Debentures will be reduced by $277.5381 per
$1,000 original principal amount of the Debentures.
Holders of the Debentures will not be entitled to the Extraordinary
Additional Distribution if they transfer or submit through DTC a notice
of exchange prior to June 29, 2018, the special record date for payment
of the Extraordinary Additional Distribution.
As a result of the AT&T/TWX Acquisition, the reference shares
attributable to each $1,000.00 original principal of Debentures consist
of a basket of 3.1648 shares of Class A common stock of Charter (NASDAQ:
CHTR) and 7.4199 shares of common stock of AT&T Inc. (NYSE: T).
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180619006424/en/
Qurate Retail, Inc.
Courtnee Chun, 720-875-5420
Source: Qurate Retail, Inc.
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