By Abigail W. Adams
Portland, Me., Feb. 22 – Liberty Broadband Corp. priced $1.1 billion of senior debentures due 2053 exchangeable for Charter Communications Inc. class A common stock after the market close on Tuesday at par with a coupon of 3.125% and an initial exchange premium of 40%, according to a company news release.
Pricing came at the cheap end of talk for a coupon of 2.625% to 3.125% and at the midpoint of talk for 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 were bookrunners for the Rule 144A offering, which carries a greenshoe of $165 million.
The notes are non-callable until April 6, 2026.
They are putable on April 6, 2026.
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 the outstanding Grizzly Merger Sub 1 LLC 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.
| Issuer: | Liberty Broadband Corp.
|
| Amount: | $1.1 billion
|
| Greenshoe: | $165 million
|
| Issue: | Exchangeable senior debentures
|
| Exchange entity: | Charter Communications Inc. class A common stock
|
| Maturity: | 2053
|
| Bookrunners: | BofA Securities Inc., Morgan Stanley & Co. LLC and RBC Capital Markets LLC
|
| Coupon: | 3.125%
|
| Price: | Par
|
| Yield: | 3.125
|
| Exchange premium: | 40%
|
| Exchange price: | $529.07
|
| Exchange rate: | 1.8901
|
| Call options: | Non-callable until April 6, 2026
|
| Put options: | Putable on April 6, 2026
|
| Pricing date: | Feb. 21
|
| Settlement date: | Feb. 28
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 2.625% to 3.125% and initial exchange premium of 37.5% to 42.5%
|
| Stock symbol: | Nasdaq: CHTR
|
| Stock price: | $377.91
|
| Market capitalization: | $57.69 billion
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
