Liberty Media Corp. plans to carve up its assets into three tracking stocks in an effort to raise capital and better highlight the performance of Sirius XM Satellite Radio and other interests.
Liberty plans to reclassify shares of Liberty Media into three tracking stock groups: Liberty Sirius Group, Liberty Braves Group and Liberty Media Group. The tracking stocks are expected to launch in the first half of next year, subject to Liberty Media shareholder approval.
“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 Liberty president-CEO Greg Maffei. Liberty Media is expected to detail the rationale behind the complicated tracking-stock plan Thursday afternoon its investor-day presentation in New York.
Liberty Braves Group will encompass the Atlanta Braves baseball team and its stadium, which is in the midst of a development project. Liberty Braves Group will receive an unspecified amount of cash and a $165 million note associated with the stadium development project that will be repaid through the cash raised from the tracking stock offering.
Liberty Sirius Group will encompass the Sirius XM Holdings unit. It take on a $250 million margin loan obligation.
The new Liberty Group tracking stock will house Liberty’s stake in Live Nation Entertainment, Inc., minority equity investments in Time Warner Inc. and Viacom and some debt. Liberty Media Group will also hold about a 20% interest in Liberty Braves Group.