Qurate Retail Announces Semi-Annual Interest Payment and Regular Additional Distribution on 3.75% Senior Exchangeable Debentures Due 2030

Rhea-AI Summary

Qurate Retail, Inc. (Nasdaq: QRTEA, QRTEB, QRTEP) announced a semi-annual interest payment of $18.75 per $1,000 of its 3.75% Senior Exchangeable Debentures, alongside a regular additional distribution of $0.28730 per Debenture. The interest payment will be made on August 16, 2021, to holders on record as of August 1, 2021. Adjustments to the principal amount of the Debentures will reflect extraordinary distributions but will not affect the interest payments. The announcement also mentions Lumen Technologies' dividends contributing to the additional distribution.

Positive

• Successful payment of $18.75 interest per $1,000 on Debentures.
• Additional distribution of $0.28730 per Debenture from Lumen Technologies dividends.

Negative

• None.

Qurate Retail, Inc. (“Qurate Retail”) (Nasdaq: QRTEA, QRTEB, QRTEP) today announced the payment of a semi-annual interest payment and a regular additional distribution to the holders as of August 1, 2021 of the 3.75% Senior Exchangeable Debentures due 2030 (the "Debentures") issued by its wholly-owned subsidiary, Liberty Interactive LLC (“LI LLC”). The amount of the interest payment is $18.75 per $1,000 original principal amount of Debentures, and the amount of the additional distribution is $0.28730 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 3.75% 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 has been one Extraordinary Additional Distribution to holders of the Debentures. On August 7, 2013, LI LLC made an Extraordinary Additional Distribution of $46.1258 per $1,000 original principal amount of the Debentures arising from the merger transaction between Sprint Nextel Corporation and SoftBank Corp.

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 3.75% 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:

August 15, 2021 Beginning Adjusted Principal	Total Payment	Interest	Additional Payment of Principal	August 15, 2021 Ending Adjusted Principal
$939.0523	$18.7500	$17.6072	$1.1428	$937.9095

LI LLC is also making a regular additional distribution of $0.28730 per Debenture, attributable to the quarterly cash dividends paid by Lumen Technologies, Inc. of $0.25 per share on both March 19, 2021 and June 11, 2021. The regular additional distribution will not result in an adjustment to the adjusted principal amount of the Debentures.

The semi-annual interest payment and regular additional distribution are expected to be made on August 16, 2021 to holders of record of the Debentures on August 1, 2021.

On April 1, 2020, T-Mobile US, Inc. completed its acquisition of Sprint Corporation (“TMUS/S Acquisition”) for 0.10256 shares of T-Mobile US, Inc. for every share of Sprint Corporation. Following the TMUS/S Acquisition, the reference shares attributable to each $1,000 original principal amount of Debentures consist of 0.2419 shares of common stock of T-Mobile US, Inc. (Nasdaq: TMUS) and 0.5746 shares of common stock of Lumen Technologies, Inc. (NYSE: LUMN).

About Qurate Retail, Inc.

Qurate Retail, Inc. is a Fortune 500 company comprised of seven leading retail brands – QVC®, HSN®, Zulily®, Ballard Designs®, Frontgate®, Garnet Hill®, and Grandin Road® (collectively, “Qurate Retail GroupSM”). Globally, Qurate Retail Group is a world leader in video commerce, among the top 10 e-commerce retailers in North America (according to Digital Commerce 360), and a leader in mobile commerce and social commerce. The retailer reaches approximately 218 million homes worldwide via 14 television networks and reaches millions more via multiple streaming services, social pages, mobile apps, websites, print catalogs, and in-store destinations. Qurate Retail, Inc. also holds various minority interests and green energy investments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210816005609/en/

FAQ

What is the interest payment amount for Qurate Retail's Debentures?

The interest payment is $18.75 per $1,000 original principal amount of the Debentures.

When will Qurate Retail make the interest payment on its Debentures?

The interest payment will be made on August 16, 2021.

What is the additional distribution amount for Qurate Retail's Debentures?

The regular additional distribution is $0.28730 per Debenture.

What are the adjustments to the Debentures' principal amount?

Adjustments to the principal amount reflect extraordinary distributions but do not affect the interest payment amount.

What triggered the additional distribution for Qurate Retail's Debentures?

The additional distribution is attributable to quarterly cash dividends paid by Lumen Technologies.