GCI Liberty, Inc. (Nasdaq: GLIBA, GLIBP) has announced that it has closed its previously announced private offering of USD 477.25 million aggregate original principal amount of its 1.75% exchangeable senior debentures due 2046, including debentures with an aggregate original principal amount of USD 62.25 million issued pursuant to the exercise of an option granted to the initial purchasers, the company said.
Upon an exchange of debentures, GCI Liberty, at its option, may deliver Charter Communications, Inc. Class A common stock, cash or a combination of Charter Class A common stock and cash. Initially, 2.6989 shares of Charter Class A common stock are attributable to each USD 1,000 principal amount of debentures, representing an initial exchange price of approximately USD 370.52 for each share of Charter Class A common stock.
A total of 1,288,051 shares of Charter Class A common stock are attributable to the debentures. Interest is payable quarterly on March 31, June 30, September 30 and December 31 of each year, commencing September 30, 2018.
The debentures may be redeemed by GCI Liberty, in whole or in part, on or after October 5, 2023. Holders of debentures also have the right to require GCI Liberty to purchase their debentures on October 5, 2023. The redemption and purchase price will generally equal 100% of the adjusted principal amount of the debentures plus accrued and unpaid interest.
GCI Liberty expects to use the net proceeds of the offering (1) to make indemnification payments to Liberty Interactive LLC.
GCI Liberty operates and owns interests in a broad range of communications businesses.