NOTE 14—SUBSEQUENT EVENTS

Sale of Business

On July 1, 2012, Cornerstone sold substantially all of the assets and certain liabilities of The Territory Ahead for approximately $1.1 million. HSNi does not expect to have any significant continuing involvement or cash flows from The Territory Ahead. See Note 10 – Discontinued Operations for further discussion of the sale.

Draw of Term Loan and Redemption of Senior Notes

On July 31, 2012, HSNi drew down $250 million from its term loan under the credit facility expiring April 24, 2017 to fund the redemption of the Senior Notes. On August 1, 2012, HSNi redeemed the Senior Notes, which had an outstanding principal balance of $240 million at 105.625% of the principal amount plus accrued and unpaid interest through the redemption date. HSNi anticipates approximately $18.3 million in pre-tax charges associated with the redemption of the Senior Notes in the third quarter of 2012. The $18.3 million in charges will result from the redemption premium of $13.5 million and $4.8 million related to the write-off of unamortized issuance costs and original issue discount.