Liberty Media Corporation Announces Financing Updates at Liberty Capital
April 07 2009 - 8:00AM
PR Newswire (US)
ENGLEWOOD, Colo., April 7 /PRNewswire-FirstCall/ -- Liberty Media
Corporation ("Liberty")
(NASDAQ:LCAPANASDAQ:LCAPBNASDAQ:LINTANASDAQ:LINTBNASDAQ:LMDIANASDAQ:LMDIB)
today announced several actions at Liberty Capital to reduce risk
and strengthen its balance sheet. Last week, Liberty used cash for
the voluntary early retirement of $750 million face amount of its
Exchangeable Debentures attributable to Liberty Capital. Liberty
paid $187.5 million (of which $37.5 million was existing cash
collateral) to retire $400 million face amount of its 4%
Exchangeable Debentures due 2029 and $350 million face amount of
its 3-3/4% Exchangeable Debentures due 2030. Liberty also
terminated swap arrangements that reference the 4% and 3-3/4%
Exchangeable Debentures with no additional payment. Including this
payment, the total cash used to retire the $750 million face amount
of Exchangeable Debentures and swaps referencing these Exchangeable
Debentures was $503 million, of which $315 million was paid to
settle swap arrangements that were settled in November 2008.
Liberty has now settled all of its swaps that reference its own or
third-party debt. In the first quarter, Liberty also took other
action to reduce its counterparty risk exposure. Liberty drew down
an additional $1,638 million against derivative positions related
to its Sprint Nextel / Embarq equity position, the present value of
the remaining borrowing capacity, bringing total outstanding debt
against derivative positions to $2,263 million. As these derivative
positions mature in 2009 and 2010, Liberty expects to use the
proceeds, anticipated to total $2,379 million, to offset these
borrowings. Also in the first quarter, Liberty unwound the
remaining derivative position related to its LodgeNet Interactive
holdings. As a result, Liberty received $41.4 million in cash and
no longer holds any LodgeNet Interactive equity. "We have increased
net asset value and strengthened our balance sheet by decreasing
our debt at a significant discount to face value and eliminating
almost all of our derivative counterparty risk," said Greg Maffei,
Liberty President and CEO. "We are focused on balance sheet
management as well as providing greater transparency and clarity
for our investors." About Liberty Media Corporation Liberty Media
Corporation owns interests in a broad range of electronic
retailing, media, communications and entertainment businesses.
Those interests are attributed to three tracking stock groups: (1)
the Liberty Interactive group (NASDAQ:LINTA), which includes
Liberty's interests in QVC, Provide Commerce, Backcountry.com,
BUYSEASONS, Bodybuilding.com, IAC/InterActiveCorp, and Expedia, (2)
the Liberty Entertainment group (NASDAQ: LMDIA), which includes
Liberty's interests in The DIRECTV Group, Inc., Starz
Entertainment, FUN Technologies, Inc., GSN, LLC, WildBlue
Communications, Inc., and Liberty Sports Holdings LLC, and (3) the
Liberty Capital group (NASDAQ:LCAPA), which includes all
businesses, assets and liabilities not attributed to the
Interactive group or the Entertainment group including its
subsidiaries Starz Media, LLC, Atlanta National League Baseball
Club, Inc., and TruePosition, Inc., and minority equity investments
in Time Warner Inc. and Sprint Nextel Corporation. DATASOURCE:
Liberty Media Corporation CONTACT: Courtnee Ulrich of Liberty Media
Corporation, +1-720-875-5420 Web Site: http://www.libertymedia.com/
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