ENGLEWOOD, Colo. - Liberty Broadband (NASDAQ:LBRDA) Corporation (NASDAQ:LBRDA, LBRDK, LBRDP) has announced its plans to offer $500 million in exchangeable senior debentures due 2054, which may be increased to $575 million if the option for additional debentures is fully exercised by initial purchasers. These debentures will be exchangeable for Charter Communications , Inc. (NASDAQ:CHTR) Class A common stock at the holders' discretion during specific periods.
The company has stated that the proceeds from the debenture offering will be used to repay existing debt and for general corporate functions. The debentures will be offered to qualified institutional buyers according to Rule 144A of the Securities Act and will not be registered under the Securities Act of 1933 or any state securities laws. Consequently, the debentures cannot be sold or offered in the United States absent registration or an exemption from these requirements.
Liberty Broadband Corporation is known for its ownership of various communications businesses, including its significant interest in Charter Communications and its subsidiary GCI, which is the largest communications provider in Alaska.
This news is based on a press release statement from Liberty Broadband Corporation.
InvestingPro Insights
As Liberty Broadband Corporation (NASDAQ:LBRDA) navigates its financial strategy with the latest debenture offering, investors and analysts are closely watching the company's market performance and valuation metrics. According to InvestingPro data, Liberty Broadband currently has a market capitalization of approximately $7.51 billion. Despite a challenging market environment, the company boasts a robust gross profit margin of 75.0% over the last twelve months as of Q1 2024, reflecting its efficiency in managing costs relative to revenue.
The company's P/E ratio, a key indicator of market expectations about the company's earnings growth, stands at 8.92, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at 8.27. This suggests that the company is trading at a relatively lower earnings multiple, which could indicate a potential value opportunity for investors. Moreover, Liberty Broadband's stock has experienced significant volatility with a 6-month price total return of -33.4% and a year-to-date price total return of -35.23%, signaling that the stock has faced downward pressure.
InvestingPro Tips highlight that Liberty Broadband's liquid assets exceed its short-term obligations, which may provide some financial flexibility in the near term. Additionally, analysts predict the company will be profitable this year, which could be a reassuring factor for investors considering the company's future prospects. It is worth noting that Liberty Broadband does not pay a dividend, which might influence investment decisions for those seeking regular income.
For a deeper dive into Liberty Broadband's financial health and to access more InvestingPro Tips, such as the company's valuation multiples and stock performance analysis, investors can visit InvestingPro's dedicated page for Liberty Broadband. There are 7 additional InvestingPro Tips available for investors seeking comprehensive insights. To enhance your investing toolkit, use the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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