Liberty Broadband Corporation has announced its plan to offer $500 million aggregate original principal amount of exchangeable senior debentures due 2054, which are exchangeable for Charter Communications, Inc. class A common stock, in a private offering. There is also an option for an additional $75 million aggregate original principal amount of debentures if the initial purchasers exercise their option in full.
The net proceeds from this offering will be used by Liberty Broadband to fund the repayment of existing indebtedness and for general corporate purposes.
It is important to note that the offering of the debentures will not be registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the securities act and applicable state securities laws. The debentures will be offered solely to "qualified institutional buyers" as defined in Rule 144A of the Securities Act.
This press release explicitly states that it does not constitute an offer to sell or the solicitation of an offer to buy the debentures, nor shall there be any sale of debentures in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state. Today the company's shares have moved -0.2% to a price of $52.15. For the full picture, make sure to review Liberty Broadband's 8-K report.
