Liberty Broadband Announces Preferred Stock Sale

Published 06/05/2025, 11:18
Liberty Broadband Announces Preferred Stock Sale

ENGLEWOOD, CO – Liberty Broadband Corp (NASDAQ:LBRDA), a $13.1 billion market cap company currently trading near its InvestingPro Fair Value, has entered into a Preferred Stock Purchase Agreement with GCI Liberty (NASDAQ:GLIBA), Inc. and two investment funds, Janus Henderson Income ETF and Janus Henderson Multi-Sector Income Fund. The agreement, dated Monday, involves the sale of 10,000 shares of GCI Liberty’s 12% Series A Cumulative Redeemable Non-Voting Preferred Stock for $10 million.

The transaction is contingent upon the completion of an internal reorganization where Liberty Broadband will transfer certain assets, including full equity interests in GCI, LLC, to GCI Liberty in exchange for stock and the assumption of liabilities. This reorganization is expected to include the filing of a Certificate of Designations with the Nevada Secretary of State to establish the terms of the preferred shares. The company maintains strong liquidity with a current ratio of 2.12, indicating healthy ability to meet short-term obligations.

The preferred shares are redeemable after seven years at the liquidation price plus any unpaid dividends. GCI Liberty has the option to redeem the shares at the liquidation price after five years. The agreement specifies that the redemption price will include all accrued and unpaid dividends up to the redemption date.

This regulatory disclosure, filed with the Securities and Exchange Commission, ensures transparency in the transaction and does not constitute a filing for any other purpose. The information is based on a press release statement from Liberty Broadband Corporation.

In other recent news, Liberty Broadband has seen a change in its stock price target by Benchmark analysts, who reduced it from $130 to $115. Despite this adjustment, the analysts continue to recommend Liberty Broadband as a Buy. The revision reflects broader market conditions and strategic financial plans, including Liberty Broadband’s intention to sell a portion of its Charter Communications (NASDAQ:CHTR) shares to eliminate corporate debt. This decision is significant in the context of Liberty Broadband’s financial strategy and the anticipated closure of Charter’s acquisition of Liberty Broadband by June 30, 2027. The analysts note that the current Net Asset Value of Liberty Broadband is discounted by about 12%, considering the shares to be distributed to shareholders and the estimated worth of the GCI asset after accounting for net debt. The new price target does not include the value of the 45.6 million Charter Communications shares owned by Liberty Broadband, as a substantial portion is expected to be sold. Benchmark’s analysis indicates that while market dynamics and strategic maneuvers have influenced the price target, the investment appeal of Liberty Broadband remains positive.

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