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Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 9—FINANCIAL INSTRUMENTS (Continued)
See Note 6 and Note 7 for discussion of the fair value of marketable securities and long-term marketable equity securities, respectively, and
Note 8 for discussion of the fair value of the auction rate securities and the derivative asset created in the HSE sale.
NOTE 10—LONG-TERM DEBT
On July 11, 2008, IAC commenced a tender offer to purchase the outstanding Senior Notes. On August 20, 2008, the Company purchased
for cash $456.7 million in principal amount of Senior Notes validly tendered. Concurrent with the tender offer and in connection with the Spin-
Off, the Company exchanged an additional $277.4 million in principal amount of Senior Notes for the debt of ILG. In connection with the tender
offer and the exchange, the Company recorded a net loss of $63.2 million on the extinguishment of $734.2 million of the Senior Notes which is
recorded in "Other income (expense)" in the accompanying consolidated statement of operations.
In connection with the financing of the construction of IAC's corporate headquarters, on August 31, 2005, the New York City Industrial
Development Agency (the "Agency") issued $80 million in aggregate principal amount of New York City Industrial Development Agency
Liberty Bonds (IAC/InterActiveCorp Project), Series 2005 (the "Liberty Bonds"). IAC is obligated to make all principal, interest and other
payments in respect of the Liberty Bonds pursuant to certain security and payment arrangements between IAC and the Agency, which
arrangements were entered into in connection with the closing of the Liberty Bond issuance. IAC's payment obligation under the Liberty Bonds
is collateralized by a mortgage interest in the corporate headquarters building.
Aggregate contractual maturities of long-term debt are as follows (in thousands):
NOTE 11—SHAREHOLDERS' EQUITY
Description of Common Stock and Class B Convertible Common Stock
With respect to matters that may be submitted to a vote or for the consent of IAC's shareholders generally, including the election of
directors, each holder of shares of IAC common stock and IAC
89
December 31,
2009 2008
(In thousands)
7.00% Senior Notes due January 15, 2013; interest payable each January 15
and July 15 which commenced July 15, 2003
$
15,844
$
15,844
5% New York City Industrial Development Agency Liberty Bonds due
September 1, 2035; interest payable each March 1 and September 1 which
commenced March 1, 2006
80,000
80,000
Long
-
term debt
$
95,844
$
95,844
Years Ending December 31,
2013
15,844
2035
80,000
95,844