QVC Announces It Completed Issuance Of One Billion In Senior Secured Notes

Avatar
By

March 18 was a billion-dollar day for QVC, Inc. of West Chester.

The subsidiary of Liberty Interactive Corp. announced completion of the previously announced offering of $400 million principal amount of new 3.125 percent senior secured notes due in 2019 – and $600 million principal amount of new 4.850 percent senior secured notes due in 2024.

That’s a billion dollars, and for shoppers, that money could buy a lot of barbecue grills. It could also buy the leading television and eCommerce retailer a lot more of the market. However, the company states in a news release the notes will be secured by a first-priority lien on the capital stock of QVC. This is the same collateral that secures QVC’s existing secured indebtedness and certain future indebtedness.

The net proceeds from the offering will be used to repay indebtedness under QVC’s senior secured credit facility and for working capital and other general corporate purposes. QVC, Inc. is a wholly-owned subsidiary of Liberty Interactive Corporation (Nasdaq: LINTA, LINTB, LVNTA, LVNTB).

The notes were offered pursuant to an exemption under the Securities Act of 1933, only to qualified institutional buyers. The notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act.

In connection with the offering of the notes, QVC has agreed to file a registration statement relating to a registered offer to exchange the notes for new registered notes having substantially identical terms.

QVC is currently celebrating spring on its web site, www.qvc.com, and offering plants, garden tools and even sandals for those whose toes are tired of being jammed into winter boots.

QVC states people in 290 million homes worldwide tune in to its television station to purchase beauty, fashion, jewelry and home products.

 

Advertisement