[June 18, 2018] |
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GCI Liberty, Inc. Closes Private Offering of $477.25 Million of 1.75% Exchangeable Senior Debentures due 2046
GCI (News - Alert) Liberty, Inc. ("GCI Liberty") (Nasdaq: GLIBA, GLIBP) announced today
that it has closed its previously announced private offering of $477.25
million aggregate original principal amount of its 1.75% exchangeable
senior debentures due 2046 (the "debentures"), including debentures with
an aggregate original principal amount of $62.25 million issued pursuant
to the exercise of an option granted to the initial purchasers.
Upon an exchange of debentures, GCI Liberty, at its option, may deliver
Charter Communications (News - Alert), Inc. ("Charter") Class A common stock, cash or a
combination of Charter Class A common stock and cash. Initially, 2.6989
shares of Charter Class A common stock are attributable to each $1,000
principal amount of debentures, representing an initial exchange price
of approximately $370.52 for each share of Charter Class A common stock.
A total of 1,288,051 shares of Charter Class A common stock are
attributable to the debentures. Interest is payable quarterly on March
31, June 30, September 30 and December 31 of each year, commencing
September 30, 2018. The debentures may be redeemed by GCI Liberty, in
whole or in part, on or after October 5, 2023. Holders of debentures
also have the right to require GCI Liberty to purchase their debentures
on October 5, 2023. The redemption and purchase price will generally
equal 100% of the adjusted principal amount of the debentures plus
accrued and unpaid interest.
GCI Liberty expects to use the net proceeds of the offering (1) to make
indemnification payments to Liberty Interactive LLC ("LI LLC"), a
direct, wholly-owned subsidiary of Qurate Retail, Inc. ("Qurate
Retail"), pursuant to GCI Liberty's indemnification agreement with LI
LLC and Qurate Retail, in connection with any of LI LLC's 1.75%
Exchangeable Debenture due 2046 that may be repurchased by LI LLC in
privately negotiated transactions, by tender offer or in other purchase
transactions (GCI Liberty made an indemnification payment of
approximately $133 million in cash to LI LLC pursuant to the
indemnification agreement) and (2) for general corporate purposes, which
may include repayment of GCI Liberty's outstanding indebtedness.
The debentures have not been registered under the Securities Act of
1933, as amended (the "Securities Act"), 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. The debentures were offered by means
of an offering memorandum solely to "Qualified Institutional Buyers"
pursuant to, and as that term is defined in, Rule 144A of the Securities
Act. This press release does not constitute an offer to sell or the
solicitation of an offer to buy the debentures nor shall there be any
sale of debentures in any state in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of such state.
Forward-Looking Statements
This press release includes certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995,
including statements relating to the use of proceeds from the offering
of the debentures. These forward-looking statements involve many risks
and uncertainties that could cause actual results to differ materially
from those expressed or implied by such statements, including, without
limitation, general market conditions. These forward-looking statements
speak only as of the date of this press release, and GCI Liberty
expressly disclaims any obligation or undertaking to disseminate any
updates or revisions to any forward-looking statement contained herein
to reflect any change in GCI Liberty's expectations with regard thereto
or any change in events, conditions or circumstances on which any such
statement is based. Please refer to the publicly filed documents of GCI
Liberty, including its most recent Annual Report on Form 10-K and
Quarterly Report on Form 10-Q, for risks and uncertainties related to
GCI Liberty which may affect the statements made in this press release.
About GCI Liberty, Inc.
GCI Liberty, Inc. (Nasdaq: GLIBA, GLIBP) operates and owns interests in
a broad range of communications businesses. GCI Liberty's principal
assets consist of its subsidiary GCI Holdings, LLC ("GCI") and interests
in Charter Communications and Liberty Broadband Corporation. GCI is
Alaska's largest communications provider, providing data, wireless,
video, voice and managed services to consumer and business customers
throughout Alaska and nationwide. GCI has delivered services for nearly
40 years to some of the most remote communities and in some of the most
challenging conditions in North America. GCI Liberty's other businesses
and assets consist of its subsidiary Evite and its interest in Lending
Tree.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180618006226/en/
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