Liberty Broadband Corporation (NASDAQ: LBRDA) announced yesterday that it intends to offer $500 million aggregate original principal amount of exchangeable senior debentures due 2054, exchangeable for Charter Communications (NASDAQ: CHTR). Class A common stock, in a private offering (or up to $575 million aggregate original principal amount of Debentures if the initial purchasers for the offering exercise in full their option to purchase additional Debentures).
The Debentures will be exchangeable at the option of holders during specified periods. Upon an exchange of Debentures, Liberty Broadband, at its option, may deliver shares of Charter Class A common stock or the value thereof in cash or any combination of shares of Charter Class A common stock and cash.
Liberty Broadband intends to use the net proceeds of the offering to fund the repayment of existing indebtedness and for general corporate purposes.
The offering of the Debentures will not be registered under the Securities Act of 1933, as amended, or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
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