Bulletin: GCI LLC Spin-Off From Liberty Broadband Does Not Affect Near-Term Credit Quality

This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Nov. 21, 2024--S&P Global Ratings today said that the proposed spin-off of Alaska-based cable and wireless provider GCI LLC (B+/Stable/--) to Liberty Broadband Corp?s shareholders will have no immediate effect on GCI's credit quality. The spin-off stems from Charter Communications Inc.?s proposed acquisition of Liberty Broadband Corp in an all-stock transaction. The deal is expected to close in June 2027 and therefore, the longer-term credit implications on GCI?s credit metrics are unclear at this time. Following the spin-off, we will reassess GCI?s financial policy. As a stand-alone company, we believe GCI will have the ability to allocate free operating cash flow (FOCF) to reinvestment or debt repayment.

...November 21, 2024 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Nov. 21, 2024--S&P Global Ratings today said that the proposed spin-off of Alaska-based cable and wireless provider GCI LLC (B+/Stable/--) to Liberty Broadband Corp's shareholders will have no immediate effect on GCI's credit quality. The spin- off stems from Charter Communications Inc.'s proposed acquisition of Liberty Broadband Corp in an all-stock transaction. The deal is expected to close in June 2027 and therefore, the longer- term credit implications on GCI's credit metrics are unclear at this time. Following the spin-off, we will reassess GCI's financial policy. As a stand-alone company, we believe GCI will have the ability to allocate free operating cash flow (FOCF) to reinvestment or debt repayment. However, GCI's financial policy and leverage profile following the spin-off remains uncertain. We project that GCI's S&P Global Ratings-adjusted leverage will be around 2.7x in 2025, down...

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