Liberty Media to Create 3 New Tracking Stock Groups

Liberty Braves Group, Liberty Media Group, and Liberty Sirius Group announced ahead of Thursday’s investor meeting

Last Updated: November 12, 2015 @ 5:58 AM

Liberty Media Corporation is set to create three new tracking stock groups: Liberty Braves Group, Liberty Media Group, and Liberty Sirius Group.

Those who hold the company’s A, B, or C series common stock will receive the corresponding new shares, and Liberty Braves holders can acquire shares of Series C Liberty Braves tracking stock.

“We expect this recapitalization to highlight each tracking stock group’s operations, and the financial performance of its attributed assets, provide greater investor choice, and enable targeted capital raising while maintaining an optimal capital structure for Liberty,” said Greg Maffei, Liberty president and chief executive officer.

Liberty intends to attribute to the Liberty Braves Group its subsidiary the Braves Holdings, LLC — which indirectly owns the Atlanta Braves — along with cash and a $165 million note obligation from the Liberty Braves Group to the Liberty Media Group, per the company. That Intergroup Note is expected to be repaid using proceeds from a proposed subscription rights offering, and remaining funds will stay with the Braves Group. The Series A, B, and C Liberty Braves Group common stock is expected to trade under symbols BATRA/B/K, respectively.

The company plans to attribute to the Liberty Sirius Group its subsidiary Sirius XM Holdings, Inc., some cash and a $250 million margin loan obligation. This group’s stock is expected to hit the NASDAQ at LSXMA/B/K.

Essentially everything else will be attributed to the Liberty Media Group, including the company’s interests in Live Nation Entertainment, Inc., minority equity investments in Time Warner Inc. and Viacom, any recovery received in connection with the Vivendi lawsuit and cash, as well as Liberty’s 1.375 percent Cash Convertible Notes due 2023 and the Intergroup Note.

Following the creation of the tracking stocks, the Liberty Media Group will also hold an approximate 20 percent intergroup interest in the Liberty Braves Group. Liberty Media Group’s common stock should trade under LMCA/B/K.

While subject to various conditions, Liberty expects to complete the creation of the new tracking stocks in the first half of 2016.

The company will discuss the announcement in further detail at today’s previously announced investor meeting.

The essential source
for entertainment insiders

Sign up for your
FREE TRIAL!