Liberty Broadband offers $1.1 billion exchangeables due 2053 for Charter stock; talk emerges

By Abigail W. Adams

Portland, Me., Feb. 21 – Liberty Broadband Corp. plans to price $1.1 billion of exchangeable notes due 2053 for Charter Communications Inc. class A common stock after the market close on Tuesday with price talk for a coupon of 2.625% to 3.125% and an initial exchange premium of 37.5% to 42.5%, according to a market source.

BofA Securities Inc., Morgan Stanley & Co. LLC and RBC Capital Markets LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $165 million.

The notes are non-callable for three-years.

They are putable in three years.

There is dividend protection with a pass-through above $0.00.

The notes will be settled in cash, shares or a combination of both at the company’s option upon exchange.

Proceeds, together with cash on hand and/or borrowings under the margin loan agreement of Liberty Broadband’s special purpose entity, will be used to repurchase all outstanding Grizzly Merger Sub 1 LLC’s 1.75% exchangeable senior debentures due 2046, Liberty Broadband’s 2.75% convertible notes due 2050 and 1.25% convertible notes due 2050 and for general corporate purposes.

Liberty Broadband is an Englewood, Colo.-based communications business with its principal assets its interest in Charter and Charter subsidiary GCI.

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