Liberty Media priced and agreed to sell to initial purchasers $444.6 million in 2.25% exchangeable senior debentures due 2046 in a private offering.
The debt securities are backed by Time Warner Inc. shares owned by Liberty and upon exchange Liberty could offer Time Warner stock, cash or a combination of both. Liberty first announced its intention to issue the debentures Thursday.
Liberty currently holds about 4.3 million shares of Time Warner stock, or less than 1% of the media company’s outstanding stock.
The offering is expected to close on Aug. 17, subject to satisfaction of customary closing conditions.
Liberty expects to use the net proceeds of the offering to provide additional funds for operations and for general corporate purposes, including to make acquisitions.