Bulletin: Charter Communications Inc.'s Purchase Of Liberty Broadband Is Leverage Neutral

NEW YORK (S&P Global Ratings) Nov. 14, 2024—Charter Communications Inc.'s announced purchase of Liberty Broadband Corp. in an all-stock transaction does not materially alter credit risk. We generally view this as a share repurchase program, consistent with the company's track record, and we anticipate management will continue to operate within its target leverage range of 4.0x-4.5x. We estimate that the deal could add about 0.1x of leverage if the $2.6 billion of debt at Liberty Broadband is assumed by Charter. We view this as unlikely given that Charter intends to make share repurchases of approximately $100 million per month to allow for timely repayment of Liberty Broadband debt in anticipation of the closing (June 30, 2027). Our forecast for 2025

...November 14, 2024 NEW YORK (S&P Global Ratings) Nov. 14, 2024--Charter Communications Inc.'s announced purchase of Liberty Broadband Corp. in an all-stock transaction does not materially alter credit risk. We generally view this as a share repurchase program, consistent with the company's track record, and we anticipate management will continue to operate within its target leverage range of 4.0x-4.5x. We estimate that the deal could add about 0.1x of leverage if the $2.6 billion of debt at Liberty Broadband is assumed by Charter. We view this as unlikely given that Charter intends to make share repurchases of approximately $100 million per month to allow for timely repayment of Liberty Broadband debt in anticipation of the closing (June 30, 2027). Our forecast for 2025 includes a placeholder for $4 billion of share repurchases, which this will be a component of. Upon merger closing, Charter (##+/Stable/--) intends to discuss appropriate changes to the governance arrangements of the company...

Bulletin