Charter Communications and Liberty Media said Wednesday that Liberty has completed its $2.6 billion investment in the cable operator.
Back in March, Liberty said it would purchase 26.9 million Charter shares and 1.1 million warrants from investment funds managed by, or affiliated with, Apollo Management, Oaktree Capital Management and Crestview Partners for $95.50 each. The deal gives Liberty beneficial ownership of 27.3% of Charter’s outstanding shares.
Liberty funded the purchase with cash on hand of $1.2 billion and borrowed $1.4 billion under newly executed margin loans on 20.3 million Charter common shares, 720 million Sirius XM common shares, 8.1 million Live Nation Entertainment common shares and a portion of Liberty’s available for sale securities.
Liberty and Charter have entered into a previously announced stockholders agreement that among other things provides Liberty the right to designate up to four directors for appointment to the Charter board. With the closing of the transaction, Liberty has designated, and Charter’s board of directors has appointed, John Malone, Chairman of Liberty; Gregory Maffei, President and CEO of Liberty; Balan Nair, EVP and CTO of Liberty Global; and Michael Huseby, CFO of Barnes & Noble to join Charter’s board of directors. Additionally, John Malone will serve on the board’s Nominating and Corporate Governance Committee, Greg Maffei will serve on the board’s Compensation and Benefits Committee, and Michael Huseby will serve on the board’s Audit Committee.
The board appointments were made in conjunction with the resignation of Stan Parker, Darren Glatt, Bruce Karsh and Edgar Lee from the board.