Qurate Retail Announces Quarterly Interest Payment and Regular Cash Dividend Amount on 0.75% Senior Exchangeable Debentures due 2043

ENGLEWOOD, Colo.–(BUSINESS WIRE)–Qurate Retail, Inc. (“Qurate Retail”) (Nasdaq: QRTEA, QRTEB) today
announced the payment of a quarterly interest payment to the holders as
of December 15, 2018 of the 0.75% Exchangeable Senior Debentures due
2043 (the “Debentures”) issued by its direct wholly-owned subsidiary,
Liberty Interactive LLC (“LI LLC”). The amount of the quarterly interest
payment is $1.875 per $1,000 original principal amount of Debentures. As
of December 31, 2018, 1,116 Debentures remained outstanding in the
aggregate adjusted principal amount of $93,613, after giving effect to
today’s quarterly interest payment.

Under the Indenture for the Debentures, the original principal amount of
the Debentures is reduced in an amount equal to each Extraordinary
Additional Distribution that is made to holders of the Debentures.
Thereafter, the adjusted principal amount is further reduced on each
successive quarterly interest payment date to the extent necessary to
cause the quarterly interest payment to represent the payment of an
annualized yield of 0.75% 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 a reduction 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, LI LLC has made three Extraordinary Additional Distributions to
holders of the Debentures:

1. On June 16, 2016, LI LLC made an Extraordinary Additional
Distribution (the “TWC Extraordinary Additional Distribution”) of
$614.4332 per $1,000 original principal amount of the Debentures
attributable to the cash distribution made to former holders of common
stock of Time Warner Cable, Inc. (“TWC”) on May 18, 2016, in connection
with the mergers involving Charter Communications, Inc. and TWC (the
“Charter/TWC Merger”). The TWC Extraordinary Additional Distribution was
based on the “average transaction consideration’’ paid in the
Charter/TWC Merger, as that term is defined in the Indenture for the
Debentures.

2. On March 1, 2018, LI LLC made an Extraordinary Additional
Distribution of $11.9399 per $1,000 original principal amount of
Debentures attributable to the cash consideration of $18.50 per share
paid to former holders of common stock of Time Inc. (“Time”) on January
31, 2018, in connection with the acquisition of Time by Meredith
Corporation.

3. On July 16, 2018, LI LLC made an Extraordinary Additional
Distribution of $277.5381 per $1,000 original principal amount of
Debentures attributable to the cash consideration of $53.75 per share
paid to former holders of common stock of Time Warner Inc. (“TWX”) on
June 15, 2018 in connection with ATT’s acquisition of TWX (“ATT/TWX
Acquisition”).

Reductions to the principal amount of the Debentures do not affect the
amount of the quarterly interest payments received by holders of the
Debentures, which will continue to be a rate equal to 0.75% per annum of
the original principal amount of the Debentures. Below is a detail of
the amount of the quarterly 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:

December 31, 2018
Beginning
Adjusted Principal

 

 

 

Payment

 

 

 

Interest

 

 

 

Payment of
Principal

 

 

 

December 31, 2018
Ending Adjusted
Principal

$85.5973

 

 

 

$1.875

 

 

 

$0.1605

 

 

 

$1.7145

 

 

 

$83.8828

 

 

 

 

 

 

 

 

 

 

 

 

LI LLC also announced the payment today, to holders of the Debentures as
of December 15, 2018, of an additional distribution of $3.7100 per
$1,000 original principal of Debentures, which is attributable to the
regular quarterly dividends paid by ATT of $0.50 on November 1, 2018.
Payments of additional distributions attributable to regular cash
dividends do not result in a reduction to the principal amount of the
Debentures.

As a result of the ATT/TWX Acquisition, the reference shares
attributable to each $1,000.00 original principal of Debentures consist
of a basket of 3.1648 shares of Class A common stock of Charter (NASDAQ:
CHTR) and 7.4199 shares of common stock of ATT Inc. (NYSE: T).

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 its subsidiaries QVC, Inc., HSN, Inc., and zulily, llc
(collectively, the Qurate Retail Group) as well as its interest in FTD,
among other things.