By Abigail W. Adams
Portland, Me., Nov. 19 – Liberty Broadband Corp. priced an upsized $750 million of 30-year exchangeable notes tied to Charter Communications Inc.’s class A common stock at par with a coupon of 1.25% and an initial exchange premium of 40%, according to a company news release.
Pricing came toward the midpoint of talk for a coupon of 1.125% to 1.625% and at the midpoint of talk for an initial exchange premium of 37.5% to 42.5%, according to a market source.
J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. were bookrunners for the Rule 144A offering, which carries an upsized greenshoe of $75 million.
The initial size of the offering was $650 million with a greenshoe of $65 million.
The notes are non-callable until Oct. 5, 2023. They are putable on Oct. 5, 2023.
The notes will be settled in cash, shares or a combination of both at the company’s option.
Proceeds will be used for general corporate purposes, which may include the repayment of debt or repurchase of Liberty Broadband common stock.
Liberty Broadband is an Englewood, Colo.-based company whose principal interest is in Charter Communications and its subsidiary Skyhook.
Charter is a Stamford, Conn.-based telecommunications company.
| Issuer: | Liberty Broadband Corp
|
| Securities: | Exchangeable notes tied to Charter Communications Inc.
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| Amount: | $750 million
|
| Greenshoe: | $75 million
|
| Maturity: | 2050
|
| Bookrunners: | J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc.
|
| Coupon: | 1.25%
|
| Price: | Par
|
| Yield: | 1.25%
|
| Exchange premium: | 40%
|
| Exchange price: | $900
|
| Exchange rate: | 1.1111
|
| Call options: | Non-callable until Oct. 5, 2023
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| Put options: | Putable on Oct. 5, 2023
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| Pricing date: | Nov. 18
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| Settlement date: | Nov. 23
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| Distribution: | Rule 144A
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| Talk: | Coupon of 1.125% to 1.625% and initial exchange premium of 37.5% to 42.5%
|
| Stock symbol: | Nasdaq: CHTR
|
| Stock price: | $642.44 at market close Nov. 18
|
| Market capitalization: | $128.41 billion
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