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) has announced the payment of a semi-annual interest payment of $18.75 per $1,000 principal for its 3.75% Senior Exchangeable Debentures due 2030, along with a regular additional distribution of $0.28730 per Debenture. These payments are scheduled for February 16, 2021, for holders of record as of February 1, 2021. The adjusted principal amount of the Debentures will not affect the interest payments. This is the first additional distribution since an Extraordinary Additional Distribution was made in 2013.

Positive

• Semi-annual interest payment of $18.75 per $1,000 principal enhances cash flow for debenture holders.
• Regular additional distribution of $0.28730 per Debenture indicates healthy underlying asset performance.

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 February 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:

February 15, 2021 Beginning Adjusted Principal	Total Payment	Interest	Additional Payment of Principal	February 15, 2021 Ending Adjusted Principal
$940.1740	$18.7500	$17.6283	$1.1217	$939.0523

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 September 11, 2020 and December 11, 2020. 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 February 16, 2021 to holders of record of the Debentures on February 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. operates and owns interests in a broad range of digital commerce businesses. Qurate Retail, Inc.’s businesses and assets consist of QVC (and its subsidiaries, including HSN), Zulily and the Cornerstone Brands (collectively, the Qurate Retail Group) as well as various green energy and other investments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210216006147/en/

FAQ

What is the amount of the semi-annual interest payment for QRTEA, QRTEB, QRTEP debentures?

The semi-annual interest payment is $18.75 per $1,000 original principal amount of the 3.75% Senior Exchangeable Debentures.

When are the interest payments for Qurate Retail debentures scheduled?

The interest payments are scheduled for February 16, 2021, for holders of record as of February 1, 2021.

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

The regular additional distribution amount is $0.28730 per Debenture.

What is the significance of the adjusted principal amount for Qurate Retail debentures?

The adjusted principal amount does not affect the semi-annual interest payments but may influence the calculation of yields on subsequent payments.