Company: LBRDK
Filing Date: 2025-01-22
Form Type: DEFM14A
Source: 0001140361-25-001609
Chunk: 289

Company: Liberty Broadband Corp
Filing Date: 2025-01-22
Form: DEFM14A
Chunk 289
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 are no longer outstanding, the stockholders and letter agreement amendment provides that the repurchase amount per month will be equal to the lesser of: (i) $100 million and (ii) the sum of (1) the amount needed in the reasonable judgment of Charter to maintain unrestricted cash on the balance sheet of Liberty Broadband and its subsidiaries (other than GCI, GCI spinco and their respective subsidiaries) of $50 million plus (2) the aggregate outstanding principal amount of loans outstanding under Liberty Broadband’s margin loan facility.

The purchase price payable by Charter to Liberty Broadband in connection with such monthly repurchases will equal (i) the average price paid by Charter for shares of Charter Class A common stock repurchased during the immediately preceding calendar month (excluding shares repurchased from A/N and certain other excluded repurchases) or (ii) if Charter has not engaged in any repurchases of shares of Charter Class A common stock during the immediately preceding calendar month (other than any repurchases from A/N and certain other excluded repurchases), a purchase price based on a Bloomberg volume-weighted average price methodology proposed by Charter and reasonably acceptable to Liberty Broadband.

#### Use of Proceeds
The stockholders and letter agreement amendment requires that the proceeds received by Liberty Broadband from any repurchases or any borrowings under a loan facility from Charter pursuant to the stockholders and letter agreement be segregated by Liberty Broadband in a separate account, and such proceeds must be used within six months of receipt to repay indebtedness of Liberty Broadband and certain of its subsidiaries (excluding GCI and its subsidiaries).

#### Ownership Cap
Under the existing stockholders agreement, Liberty Broadband is subject to an ownership cap, which is currently equal to 26% and is calculated in the manner set forth in the existing stockholders agreement, and Liberty Broadband must comply with certain standstill restrictions that prohibit it from acquiring shares of Charter in excess of such ownership cap.

The stockholders and letter agreement amendment provides that Liberty Broadband will be exempt from the standstill restrictions and the ownership cap under the existing stockholders agreement to the extent its ownership in Charter exceeds such ownership cap solely as a result of the repurchase provisions in the stockholders and letter agreement amendment.

If the merger agreement is terminated prior to completion of the combination, Liberty Broadband’s ownership cap under the stockholders agreement will be reset at the greater of (i) Liberty Broadband’s equity interest at the time of such termination, and (ii) the voting cap applicable to the Liberty Parties (as defined