Liberty Broadband Corporation (Nasdaq: LBRDA, LBRDK) has announced that it has priced and agreed to sell to initial purchasers in an upsized private offering USD 500 million aggregate original principal amount of its 2.75% exchangeable senior debentures due 2050 (the “Debentures”) exchangeable for Charter Communications, Inc. (“Charter”) Class A common stock, the company said.
Liberty Broadband has also granted the initial purchasers an option to purchase additional Debentures in an aggregate original principal amount of up to USD 75 million.
Upon an exchange of Debentures, Liberty Broadband, at its option, may deliver shares of Charter Class A common stock or the value thereof in cash or a combination of shares of Charter Class A common stock and cash. Initially, 1.1661 shares of Charter Class A common stock are attributable to each USD 1,000 original principal amount of Debentures, representing an initial exchange price of approximately USD 857.56 for each share of Charter Class A common stock.
A total of approximately 583,050 shares of Charter Class A common stock are attributable to the Debentures (assuming the initial purchasers do not exercise their option to purchase additional Debentures). Interest will be payable quarterly on March 31, June 30, September 30 and December 31 of each year, commencing December 31, 2020. The Debentures may be redeemed by Liberty Broadband, in whole or in part, on or after October 5, 2023.
Holders of Debentures also have the right to require Liberty Broadband 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 to the redemption date, plus any final period distribution.
The offering is expected to close on August 27, 2020, subject to the satisfaction of customary closing conditions.
Liberty Broadband´s businesses consist of its interest in Charter and its subsidiary Skyhook.