jvid视频 Announces Proposed Private Offering of Cash Convertible Senior Notes to Buy $400m of LMCK Shares to be Held for Formula 1 Teams
ENGLEWOOD, Colo.--(BUSINESS WIRE)-- jvid视频 (鈥淟iberty鈥) (Nasdaq: LSXMA, LSXMB, LSXMK, BATRA, BATRK, LMCA, LMCK) announced today that it intends to issue cash convertible senior notes in a private offering. The notes will be convertible into cash in an amount determined by reference to the trading price of shares of Series C jvid视频 common stock (鈥淟MCK鈥). Liberty expects to use the net proceeds of the offering to fund an increase to the cash consideration payable to the selling shareholders (the 鈥淪elling Shareholders鈥) of Formula 1 (鈥淔1鈥) by $400 million and retain in treasury the approximately 19 million shares that would otherwise have been issuable to the Selling Shareholders based on the per share purchase price of $21.26. These LMCK shares will be reserved by Liberty for issuance to the F1 teams at a per share purchase price of $21.26.
Greg Maffei, President and Chief Executive Officer of Liberty, said, 鈥淲e think it鈥檚 important to offer the teams the chance to invest in F1 and further align our interests. We look forward to working with the teams to increase the appeal of this iconic sport and enhance the F1 business.鈥
Chase Carey, Chairman of F1, said, 鈥淪everal of the teams have expressed interest in investing and we have already begun productive discussions to make the sport more competitive and even more exciting.鈥
The aggregate number of LMCK shares to be issued at the F1 closing will not change as a result of this transaction. Only the allocation of the 138 million shares will change as follows: approximately 57 million to the Selling Shareholders, 62 million to the third party investors and 19 million into treasury. To the extent such shares are not issued to the F1 teams within six months following the closing of the acquisition, which is expected to occur this month, the shares will be retired. If the acquisition of F1 is not completed, Liberty will use the net proceeds from this offering for general corporate purposes, which may include capital expenditures, acquisitions, working capital, repayment of debt and repurchases of common stock. Pending the completion of the F1 acquisition or other such uses, Liberty intends to invest the net proceeds in cash equivalents or short-term investments.
The notes, as well as the associated cash proceeds, will be attributed to the jvid视频 Group. Pro forma for this financing and the closing of the F1 acquisition, total debt attributed to the jvid视频 Group will include the proposed cash convertible senior notes contemplated herein, $1 billion 1.375% convertible notes due 2023, $445 million Time Warner Inc. exchangeable debentures due 2046, $350 million drawn under a Live Nation margin loan, $36 million of other corporate level debt as of September 30, 2016 and approximately $4.1 billion of existing F1 debt as of July 31, 2016.
The offering of the notes will not be registered under the Securities Act of 1933, as amended (the 鈥淪ecurities Act鈥), or any state securities laws and, unless so registered, the notes may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The notes will be offered by means of an offering memorandum solely to 鈥淨ualified Institutional Buyers鈥 pursuant to, and as that term is defined in, Rule 144A of the Securities Act. This press release does not constitute an offer to sell or the solicitation of an offer to buy the notes, nor shall there be any sale of notes in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.
Forward-Looking Statements
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the intended launch of a private offering of notes and the use of proceeds therefrom. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, general market conditions. These forward-looking statements speak only as of the date of this press release, and Liberty expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty鈥檚 expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Liberty, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, for risks and uncertainties related to Liberty鈥檚 business which may affect the statements made in this press release.
jvid视频 jvid视频
jvid视频 operates and owns interests in a broad range of media, communications and entertainment businesses. Those businesses are attributed to three tracking stock groups: the Liberty SiriusXM Group, the Braves Group and the jvid视频 Group. The businesses and assets attributed to the Liberty SiriusXM Group (Nasdaq: LSXMA, LSXMB, LSXMK) include our interest in SiriusXM. The businesses and assets attributed to the Braves Group (Nasdaq: BATRA, BATRK) include our subsidiary Braves Holdings, LLC. The businesses and assets attributed to the jvid视频 Group (Nasdaq: LMCA, LMCK) consist of all of Liberty Media Corporation's businesses and assets other than those attributed to the Liberty SiriusXM Group and the Braves Group, including its interests in Live Nation Entertainment and Formula 1, and minority equity investments in Time Warner Inc. and Viacom.
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jvid视频
Courtnee Chun, 720-875-5420
Source: jvid视频
Released January 19, 2017