Company: LBRDK
Filing Date: 2025-01-17
Form Type: PRER14A
Source: 0001140361-25-001417
Chunk: 112

Company: Liberty Broadband Corp
Filing Date: 2025-01-17
Form: PRER14A
Chunk 112
---
 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 December 31, 2024, Charter had consolidated debt of approximately $93.8 billion 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 |

54

TABLE OF CONTENTS

| • | 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. 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 Charter’s results of operations, financial condition, and liquidity following the completion of the combination. Charter may fail to realize all of the anticipated benefits of the combination or those benefits may take longer to realize than expected. The full benefits of the combination may not be realized as expected or may not be achieved within the anticipated time frame, or at all. Failure to achieve the anticipated benefits of the combination could cause dil