Liberty Interactive Announces Semi-Annual Payment on 3.5% Senior Exchangeable Debentures Due 2031 and Changes to Date in Adjusted Principal Amount

ENGLEWOOD, Colo.--(BUSINESS WIRE)-- Liberty Interactive LLC ("Liberty"), a subsidiary of Liberty Interactive Corporation (Nasdaq: LINTA, LINTB), announced a semi-annual payment to the holders of its 3.5% Senior Exchangeable Debentures due in 2031 (the "Debentures"). The amount of the payment is $17.50 per $1,000 of original principal amount of the Debentures.

History of Changes to Reference Securities


(on or about)

      Corporate Event       Reference Securities

Underlying Debenture

      Shares per Bond
7/15/2001       Debenture issuance       Motorola Inc.       36.8189

Motorola spins-off
Freescale Semiconductor
to shareholders

      Motorola Inc.

Freescale (Class B)

      36.8189 MOT

4.0654 FSL.B


Freescale taken private at
$40 per share

      Motorola Inc.       36.8189 MOT

Motorola Inc. changes
name, splits-off Motorola
Mobility and effects
reverse stock split

      Motorola Solutions

Motorola Mobility

      5.2598 MSI

4.6024 MMI


Google buys Motorola
Mobility for $40 per share

      Motorola Solutions       5.2598 MSI

Changes to Principal Amount

Under the Indenture for the Debentures, the 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 Motorola Mobility Holdings, Inc (“MMI”) acquisition by Google

As of the date of this press release, the adjusted principal amount of a Debenture in the original principal amount of $1,000 is $619.0964. With respect to the extraordinary distribution that resulted from the Google/MMI transaction, the first related principal adjustment will occur on the interest payment scheduled for January 15, 2013.

History of Changes to Principal Amount

The adjustments described above do not affect the gross amount of the semi-annual payments received by holders of the Debentures, which continues to be a rate equal to 3.5% per annum of the original principal amount of the Debentures. Below is detail of the payments made on the Debentures, the allocations between payment of interest and repayment of principal, and the revised adjusted principal amount resulting from the payment, per $1,000 of original principal amount of the Debentures:



      Payment       Interest      

Reduction of



Jan 10, 2007/


      $1,000.00                       $162.6160       $837.3840

Semi-annual interest
periods from
1/15/2007 through

      $837.3840       $192.50       $161.6933       $30.8067       $806.5773
June 20, 2012/


      $806.5773                       $184.0960       $622.4813

Semi-annual interest
period of 7/15/2012

      $622.4813       $17.50       $14.1151       $3.3849       $619.0964

The semi-annual interest payment and additional distribution are expected to be made on July 13, 2012 to holders of record of the Debentures on July 1, 2012. Subsequent to this payment, the aggregate outstanding adjusted principal amount of the Debentures is $371.5 million.

About Liberty Interactive LLC

Liberty Interactive LLC is an intermediate holding company of Liberty Interactive Corporation, owning interests in a broad range of digital commerce businesses.

Liberty Interactive Corporation
Courtnee Ulrich, 720-875-5420

Source: Liberty Interactive Corporation