Liberty Broadband greenshoe lifts exchangeables to $825 million

By Taylor Fox

New York, Nov. 23 – Initial purchasers of Liberty Broadband Corp.’s 1.25% senior debentures due 2050 exchangeable for Charter Communications, Inc. class A common stock exercised their $75 million greenshoe in full, bringing the total deal size to $825 million on Nov. 19, according to a news release.

Liberty Broadband priced an upsized $750 million of the 30-year exchangeable notes on Nov. 18 at par with a coupon of 1.25% and an initial exchange premium of 40%, as previously reported.

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.

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.

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