Liberty Cuts QVC Debt with Sale


Liberty Media Corp. said it has completed its sale of $1.35 billion in 3.5%
three-year notes -- debt that the company issued as part of its agreement to
purchase the 57.5% interest in QVC Inc. it didn’t already own from Comcast

The issuance of the three-year notes will reduce the debt component of the
Comcast deal from $5.35 billion to about $4 billion, Liberty said in a

The notes were priced at about 45 basis points below the original $5.35
billion in debt issued that was to be issued to Comcast.

The QVC deal, valued in total at about $7.9 billion, is expected to close
later this week, according to a research report by Merrill Lynch & Co. media
analyst Jessica Reif Cohen. She added that QVC has about $600 million in cash on
its books.

"Although Liberty paid a full purchase price to acquire Comcast’s majority
stake, QVC is debt-free, generates enormous free cash flow and its earnings can
be sheltered for the next two to three years using Liberty’s tax position (QVC
is a full taxpayer today)," Reif Cohen wrote.