By Rebecca Melvin
New York, Aug. 25 – Liberty Broadband Corp. priced an upsized $500 million of 2.75% senior debentures due 2050 exchangeable for Charter Communications, Inc. common stock, according to a news release on Tuesday.
The deal size was initially talked at $450 million. There is also a $75 million greenshoe, which was upsized from $67.5 million.
The initial exchange price is $857.56 for each share of Charter stock, which represents a 28.6% premium over the closing share price of Charter stock on Monday.
The notes may be redeemed in whole or in part by Liberty from Oct. 5, 2023, and holders can put the debenture on Oct. 5, 2023. They can be settled in stock, cash or a combination of the two.
Proceeds from the Rule 144A issue are expected to be used for general corporate purposes, which may include the repurchase of shares of Liberty Broadband common stock.
Englewood, Colo.-based Liberty Broadband has ownership of TruePosition, Inc., which develops and markets technology for locating wireless phones on a cellular network and holds an interest in Charter Communications, Inc. and a minority equity investment in Time Warner Cable, Inc.
| Issuer: | Liberty Broadband Corp.
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| Exchange entity: | Charter Communications Inc.
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| Securities: | Exchangeable senior debentures
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| Amount: | $500 million, upsized from $450 million
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| Greenshoe: | $75 million, upsized from $67.5 million
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| Maturity: | 2050
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| Coupon: | 2.75%
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| Exchange premium: | 28.6% over closing price of exchange shares on Aug. 24
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| Exchange price: | $857.56
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| Call options: | Callable after Oct. 5, 2023
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| Put options: | Putable on Oct. 5, 2023
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| Pricing date: | Aug. 24
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| Settlement date: | Aug. 27
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| Distribution: | Rule 144A
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| Stock symbol: | Nasdaq: CHTR
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| Stock price: | $612.53 at market close Aug. 24
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