Qurate Retail Announces Semi-Annual Interest Payment and Regular Additional Distribution on 4.0% Senior Exchangeable Debentures Due 2029

Rhea-AI Summary

Qurate Retail announced the payment of a semi-annual interest payment and an additional distribution to holders of its 4.0% Senior Exchangeable Debentures due 2029. The interest payment amounts to $20.00 per $1,000 principal, with an additional distribution of $0.3930 per Debenture. These payments will be made on May 17, 2021, to holders as of May 1, 2021. The semi-annual payment reflects an annualized yield of 4.0%. The adjusted principal amount of Debentures will see a slight reduction but remains unaffected in terms of interest payment amounts.

Positive

• Payment of $20.00 interest per $1,000 principal demonstrates consistent yield.
• Additional distribution of $0.3930 per Debenture increases overall returns.

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 May 1, 2021 of the 4.0% Senior Exchangeable Debentures due 2029 (the "Debentures") issued by its wholly-owned subsidiary, Liberty Interactive LLC (“LI LLC”). The amount of the interest payment is $20.00 per $1,000 original principal amount of Debentures (a “Debenture”), and the amount of the additional distribution is $0.3930 per Debenture.

Under the Indenture for the Debentures, the original principal amount of the Debentures is reduced by 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 4.0% 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 $63.0960 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 4.0% 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 announced today, its allocation between payment of interest and repayment of principal and the revised adjusted principal amount resulting from such payment, per $1,000 original principal amount of the Debentures:

May 15, 2021 Beginning Adjusted Principal	Total Payment	Interest	Additional Payment of Principal	May 15, 2021 Ending Adjusted Principal
$916.7462	$20.0000	$18.3349	$1.6651	$915.0811

LI LLC is also making a regular additional distribution of $0.3930 per Debenture, attributable to the quarterly cash dividends paid by Lumen Technologies, Inc. of $0.25 per share on both December 11, 2020 and March 19, 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 paid on May 17, 2021 to holders of record of the Debentures on May 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 0.3309 shares of common stock of T-Mobile US, Inc. (Nasdaq: TMUS) and 0.7860 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/20210517005065/en/

FAQ

What interest payment did Qurate Retail announce for its Debentures on May 1, 2021?

Qurate Retail announced a semi-annual interest payment of $20.00 per $1,000 principal amount of its 4.0% Senior Exchangeable Debentures.

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

The additional distribution for the Debentures is $0.3930 per Debenture.

When will Qurate Retail make the interest payment and additional distribution?

The payments are expected to be made on May 17, 2021.

How does the principal amount of Qurate Retail's Debentures adjust?

The principal amount is reduced by the amount of each Extraordinary Additional Distribution made to holders.

What was the record date for the interest payment of Qurate Retail's Debentures?

The record date for the interest payment was May 1, 2021.