Company: LBRDK
Filing Date: 2025-01-10
Form Type: PRER14A
Source: 0001140361-25-000778
Chunk: 112

Company: Liberty Broadband Corp
Filing Date: 2025-01-10
Form: PRER14A
Chunk 112
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, there could be adverse effects on the financial position of each of Liberty Broadband and Charter and on the combination. If the merger agreement is terminated without the combination having been completed, Liberty Broadband may own a greater economic interest in Charter than it owned prior to the entry into the merger agreement. The stockholders and letter agreement amendment provides that, if the merger agreement is terminated without the combination having been completed, Liberty Broadband’s ownership cap under the existing stockholders agreement would 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 in the existing stockholders agreement), and Liberty Broadband would not be required to dispose of any excess shares accumulated during the pendency of the combination above the current ownership cap. Liberty Broadband would, however, continue to be subject to the voting cap under the existing stockholders agreement. For more information, see “Other Agreements Related to the Combination—Stockholders and Letter Agreement Amendment.” Risks Related to Charter and the Combined Company after Completion of the Combination Charter currently has significant indebtedness and may become more leveraged with debt following the combination, which could adversely affect its business and financial condition after the completion of the combination. As of [ ], 2025, the most recent practicable date prior to the date of this joint proxy statement/prospectus, Charter had consolidated debt of approximately $[ ] million in principal amount. As a result of its significant indebtedness, Charter may:

| • | experience vulnerability to general adverse economic and industry conditions; |

| • | be required to dedicate a substantial portion of its cash flow from operations to principal and interest payments on its indebtedness, thereby reducing the availability of cash flow to fund working capital, capital expenditures, strategic acquisitions and investments and other general corporate purposes; |

| • | be constrained in its ability to optimally capitalize and manage the cash flow for its businesses; and |

| • | be exposed to the risk of increased interest rates with respect to any variable rate portion of its indebtedness. |

In addition, it is possible that Charter may need to incur additional indebtedness in the future, including to refinance and/or in connection with the assumption of indebtedness of Liberty Broadband and/or its subsidiaries.

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**If new debt is added to the pro forma debt levels, the risks described above could intensify. The impact of any of these potential adverse consequences could have a material adverse effect on