Liberty Broadband Corporation has closed its private offering of $860 million of 3.125% exchangeable senior debentures due 2054. This includes $60 million issued pursuant to the exercise of an option granted to the initial purchasers, which was partially exercised.
In connection with the offering of the debentures, Liberty Broadband repaid $540 million of borrowings under the margin loan agreement of its indirect, wholly-owned special purpose entity, and repurchased a total of $300 million in aggregate principal amount of its 3.125% exchangeable senior debentures due 2053 through individually privately negotiated transactions.
Upon an exchange of the debentures, Liberty Broadband, at its option, may deliver shares of Charter Communications, Inc. Class A common stock or the value thereof in cash or any combination of shares of Charter Class A common stock and cash. Initially, 2.5442 shares of Charter Class A common stock are attributable to each $1,000 original principal amount of debentures, representing an initial exchange price of approximately $393.05 for each share of Charter Class A common stock. A total of 2,188,012 shares of Charter Class A common stock are initially attributable to the debentures. Interest is payable quarterly on March 31, June 30, September 30 and December 31 of each year, commencing December 31, 2024. The debentures may be redeemed by Liberty Broadband, in whole or in part, on or after December 15, 2028, and holders of the debentures also have the right to require Liberty Broadband to purchase their debentures on December 15, 2028.
It's important to note that the debentures have not been registered under the Securities Act of 1933, as amended, or any state securities laws and, unless so registered, 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.
Liberty Broadband Corporation operates and owns interests in a broad range of communications businesses, with its principal assets consisting of its interest in Charter Communications and its subsidiary GCI, Alaska’s largest communications provider. As a result of these announcements, the company's shares have moved 1.4% on the market, and are now trading at a price of $54.65. For the full picture, make sure to review Liberty Broadband's 8-K report.
