Liberty Broadband subsidiary enters $400 million loan with spinoff

By Jennifer Chiou

New York, Nov. 5 – Liberty Broadband Corp.’s wholly owned special-purpose subsidiary, BroadbandSPV, entered into margin loan agreements in connection with Liberty Media Corp.’s completed spinoff of Liberty Broadband into a separate company, according to an 8-K filing with the Securities and Exchange Commission.

The margin loan agreements permit BroadbandSPV to borrow term loans of up $400 million aggregate principal amount.

The company borrowed $320 million on Oct. 31, and the funds were distributed to Liberty Media prior to the spinoff.

Borrowings bear interest at Libor plus 155 bps.

The loan will come due in three years.

The filing noted that BroadbandSPV’s obligations under the agreements are fully and unconditionally guaranteed solely by Liberty Broadband. In addition, BroadbandSPV’s obligations are secured by first-priority liens on a portion of Liberty Broadband’s ownership interest in Charter Communications, Inc.

Englewood, Colo.-based Liberty Media owns interests in electronic retailing, media, communications and entertainment businesses.

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