Liberty Broadband extends margin loan agreement, swaps out Libor

By Marisa Wong

Los Angeles, May 22 – A bankruptcy remote wholly owned subsidiary of Liberty Broadband Corp. entered into a seventh amendment on May 17 to its the margin loan agreement dated Aug. 31, 2017 with BNP Paribas, New York Branch as the administrative agent to extend the maturity date and modify the interest rate benchmark, according to an 8-K filing with the Securities and Exchange Commission.

The margin loan agreement provides for a $1.15 billion term loan, a $1.15 billion revolving credit facility and an uncommitted incremental term loan of up to $200 million.

No additional borrowings were made on the amendment effective date, and so there are currently $1.15 billion of term loans and $325 million of revolving loans outstanding.

The amendment provides for an extension of the scheduled maturity date to May 12, 2026.

Interest will now be determined using SOFR instead of Libor.

The amendment also increases the base spread applicable to all loans funded under the margin loan agreement. Details were not spelled out in the 8-K filing.

In addition, the amendment removes some conditions precedent to the release of pledged shares from the security interest of the lenders and makes some conforming changes related to the above.

Liberty’s principal assets consist of interest in Charter Communications and its subsidiary GCI. The company is based in Englewood, Colo.

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