I'm not great at reading into complex stuff, so I would love to see better investors' inputs on this. What I have so far:
-For every 20 share block, you get 5 shares and 4 rights (transferable for a share at about 80% market cost iiuc) of the spinoff.
-implied value if exercise: 9/29x16bil total cap (A,B,C)= about $5bilcap for Broadband, 9/29x$47avg pps= $15pps Broadband, excluding the 20ish% discount on rights (tell me if the calcs are on the right track!)
-Will borrow $300mil from parent, makes cash payment of $300mil to parent (What's that for?)
-Keeps talking about how leveraged the company will be, but is that all there is to it?
-I don't know what is par for the course in rights offerings, but upon reading documentation rights appear difficult to exercise.
-You get 26% of Charter, 100% of True Position, $3bil in deferred tax assets (vs. about 5bil market cap if every right is exercised?), a small holding in Time Warner Cable, and other unnamed small stuff.
-Malone will have at least 45% stake
"Charter's primary assets are its equity interests in its subsidiaries. Charter's operating subsidiaries are separate and distinct legal entities and are not obligated to make funds available to their debt issuer holding companies for payments on our notes or other obligations in the form of loans, distributions, or otherwise."
-What I get from this is that most of Charter's revs/exps will instead be capitalized on the balance sheet as equity instruments? Additionally, these subs are not under any obligations re: Charter/LibertyBroadband's debt? I don't understand how large a % of Liberty's Broadband this interest is, but behind the prospectus going on and on about how leveraged Broadband will be and this, it looks like a mini version of the spinoff that made Malone famous? Or am I not seeing things correctly?