GCI unit extends loan agreement and adds $300 million delayed-draw

By Sarah Lizee

Olympia, Wash., Nov. 27 – GCI Liberty, Inc. subsidiary Broadband Holdco, LLC amended its margin loan agreement on Monday with JPMorgan Chase Bank, NA, London Branch as administrative agent, extending the maturity date to Dec. 29, 2021 and providing commitments for a new delayed-draw term loan facility of $300 million, according to an 8-K filing with the Securities and Exchange Commission.

The new delayed-draw term loan facility is in addition to the existing term loan facility and revolving credit facility under the existing margin loan agreement.

After giving effect to the second amendment, $800 million of loans under the term loan facility were outstanding, and $100 million of loans under the revolver were outstanding.

No borrowings under the delayed-draw term loan facility were made at closing.

Proceeds may be used to make dividends and distributions, for the purchase of margin stock, to make investments prohibited under the agreement and/or for general corporate purposes.

At closing, Broadband paid all accrued interest on the loans outstanding under the term loan facility and revolver.

Loans will bear interest at Libor plus 185 basis points.

Broadband also amended and restated its master revolving subordinated promissory note to increase the amount available to $500 million and to amend some subordination provisions.

GCI Liberty is an Englewood, Colo.-based owner and operator of a broad range of communications businesses.

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