Charter Communications (NASDAQ: CHTR) sees $965M exchangeable debt repaid in cash
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Liberty Broadband Corp reported open-market purchase transactions in this Form 4 filing.
Liberty Broadband Corp, a director and significant owner of Charter Communications, fully repurchased its 3.125% exchangeable senior debentures due 2053 that were linked to Charter’s Class A common stock. The debentures were cash-settled instruments tied to Charter’s share value rather than delivering stock.
On April 1, 2026, Liberty Broadband accepted for repurchase in cash the full $965,000,000 aggregate original principal amount of these debentures. On April 6, 2026, holders will be paid $1,000 per $1,000 of original principal plus $0.5208 of accrued and unpaid interest, fully retiring this exchangeable debt position.
Positive
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Negative
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Insights
Liberty Broadband retires $965M Charter-linked exchangeable debt in cash.
Liberty Broadband, a major Charter Communications stakeholder, accepted for repurchase the full $965,000,000 aggregate original principal of its 3.125% exchangeable senior debentures due 2053. These securities were economically linked to Charter’s Class A common stock but were structured to settle only in cash.
Each $1,000 debenture was exchangeable for 1.8901 Charter shares in value, yet no Charter stock changes hands because settlement is cash-based. Holders instead receive $1,000 per $1,000 of original principal plus $0.5208 in accrued interest on April 6, 2026. The transaction eliminates Liberty’s remaining exposure under this specific exchangeable instrument.
Insider Trade Summary
1 transaction reported
Mixed
1 txn
Insider
Liberty Broadband Corp
Role
Director, 10% Owner
Bought
0 shs ($0.00)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Purchase | 3.125% Exch. Senior Debentures due 2053 (obligation to sell) | 0 | $0.00 | -- |
Holdings After Transaction:
3.125% Exch. Senior Debentures due 2053 (obligation to sell) — 0 shares (Direct)
Footnotes (1)
- Each $1,000 principal amount of 3.125% senior debentures due 2053 (the "Debentures") issued by the reporting person was exchangeable for 1.8901 shares of issuer's Class A common stock, par value $0.001 per share (the "Common Stock"), settled only in cash based on the value of the shares of Common Stock. Each Debenture was exchangeable at the option of the holder during specified periods. Holders of the Debentures had the right to put them to the reporting person on April 6, 2026, or prior thereto following the occurrence of a "fundamental change," and the 3.125% Debentures were redeemable by the reporting person, (i) in whole or in part, on or after April 6, 2026 at any time, or (ii) in whole, but not in part, prior to April 6, 2026, after the occurrence of certain conditions or events. The expiration date for the Debentures was March 31, 2053. On April 1, 2026, the reporting person accepted for repurchase in cash the full $965,000,000 aggregate original principal amount of Debentures outstanding. On April 6, 2026, holders of the Debentures will receive payment of $1,000 for each $1,000 original principal amount of Debentures, plus accrued and unpaid interest in the amount of $0.5208.
Key Figures
Debentures repurchased: $965,000,000 aggregate original principal
Per debenture repayment: $1,000 per $1,000 principal
Accrued interest: $0.5208 per $1,000 principal
+3 more
6 metrics
Debentures repurchased
$965,000,000 aggregate original principal
3.125% exchangeable senior debentures due 2053
Per debenture repayment
$1,000 per $1,000 principal
Cash paid to holders on April 6, 2026
Accrued interest
$0.5208 per $1,000 principal
Additional cash interest paid April 6, 2026
Exchange ratio
1.8901 shares per $1,000
Charter Class A value reference per debenture
Debenture expiration
March 31, 2053
Stated expiration date of 3.125% debentures
Holder put date
April 6, 2026
Date holders could put debentures to issuer
Key Terms
exchangeable senior debentures, aggregate original principal amount, fundamental change, accrued and unpaid interest, +1 more
5 terms
exchangeable senior debentures financial
"3.125% senior debentures due 2053 (the "Debentures") issued by the reporting person was exchangeable"
A debt instrument that works like a loan-style bond but can be swapped for shares of a specified company instead of being repaid in cash. It is “senior,” meaning holders are higher in line to get paid than many other creditors if the issuer gets into trouble, and “exchangeable” because the holder can convert the claim into equity of another firm under set terms. Investors care because it combines regular interest and credit safety with a potential equity upside, while also affecting share counts and recovery prospects in distress.
aggregate original principal amount financial
"accepted for repurchase in cash the full $965,000,000 aggregate original principal amount of Debentures"
fundamental change regulatory
"or prior thereto following the occurrence of a "fundamental change,""
A fundamental change is a major shift in how a company or economy operates, like a new technology or a big change in leadership. It matters because such changes can affect the value or stability of investments, making them more or less attractive. Think of it like a major upgrade or shift in the rules of a game that can change the outcome.
accrued and unpaid interest financial
"plus accrued and unpaid interest in the amount of $0.5208."
Accrued and unpaid interest is the interest that has built up on a loan or debt but hasn't been paid yet. It's like owing your friend money for a favor over time—you're expected to pay it later, even though you haven't paid it yet. This matters because it shows how much you owe beyond the original amount borrowed.
redeemable financial
"the 3.125% Debentures were redeemable by the reporting person, (i) in whole or in part"
FAQ
How were Liberty Broadband’s 3.125% exchangeable senior debentures tied to Charter (CHTR) stock?
Each $1,000 principal amount of the 3.125% senior debentures was exchangeable into the cash value of 1.8901 shares of Charter’s Class A common stock. The debentures referenced Charter’s share price but were explicitly settled in cash rather than delivering actual Charter shares.
What cash will debenture holders receive after Liberty Broadband’s repurchase?
On April 6, 2026, holders of the 3.125% exchangeable senior debentures will receive $1,000 for each $1,000 of original principal amount, plus accrued and unpaid interest of $0.5208 per $1,000, providing full cash repayment of the $965,000,000 aggregate original principal outstanding.
Did Liberty Broadband’s transaction issue or deliver any Charter Communications (CHTR) shares?
No Charter shares are issued or delivered in this transaction. The debentures were designed to be settled only in cash based on the value of Charter’s Class A common stock, so the repurchase simply pays cash to debenture holders and removes the exchangeable debt exposure.
When did Liberty Broadband’s exchangeable senior debentures mature and what changed in 2026?
The 3.125% exchangeable senior debentures were scheduled to expire on March 31, 2053. However, holders could put them to Liberty Broadband on April 6, 2026, and Liberty elected to accept for repurchase the entire $965,000,000 principal amount in cash ahead of that date.