Liberty Broadband Corp (LBRDK) News & EventsLBRDKLiberty Broadband Corp

Charter Completes Transaction with Cox Communications and Liberty Broadband

Charter (CHTR) has completed its transaction with Cox Communications and the acquisition of Liberty Broadband (LBRDK). A subsidiary of Cox Enterprises received: approximately 33.6 million common units in Charter's existing partnership, with an implied value of approximately $5B, and which are exchangeable for Charter common shares; $6B of convertible preferred units of Charter Holdings, with a 6.875% coupon, convertible into 12.6 million common units of Charter Holdings, and exchangeable for Charter common shares; and a total of approximately $4B in cash. In aggregate, Charter issued the equivalent of just over 46 million Charter shares to a subsidiary of Cox Enterprises. Cox Enterprises and its subsidiaries now own approximately 26% of the combined entity's fully diluted shares outstanding. Additionally, approximately $12B of Cox debt and finance leases will remain outstanding at subsidiaries of Charter as a result of the transaction. Concurrent with the closing of the Cox transaction, Charter closed its transaction with Liberty Broadband. Each holder of Liberty Broadband Series A common stock, Series B common stock, and Series C common stock received 0.236 of a share of Charter common stock per share of Liberty Broadband common stock held, with cash paid in lieu of fractional shares. Each holder of Liberty Broadband Series A cumulative redeemable preferred stock received one share of newly issued Charter cumulative redeemable preferred stock per share of Liberty Broadband preferred stock held. As a result of the transaction, Charter retired approximately 38.6 million Charter shares previously owned by Liberty Broadband and issued approximately 33.9 million shares to holders of Liberty Broadband common stock at closing, resulting in a net decrease of approximately 4.7 million Charter shares outstanding. Charter assumed approximately $840M of Liberty Broadband net debt that will be repaid shortly after closing, and $180M of preferred equity that became Charter preferred equity upon the close of the transaction. At close, Liberty Broadband ceased to be a direct shareholder in Charter and no longer designates directors for election to the Charter board. Within a year following the transaction, the company will change its parent company name to Cox Communications but will continue to operate as Spectrum across all markets. The company also will remain headquartered in Stamford, CT, keeping a significant presence in Atlanta, GA.

Liberty Broadband Shares Down 24% to $42.89

Liberty Broadband is down -24.0%, or -$13.58 to $42.89.

Liberty Broadband Shares Drop 17.8% to $46.42

Liberty Broadband is down -17.8%, or -$10.05 to $46.42.